Energy prices set to soar for millions of Britons from April

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  • #139034 Reply
    Brydo
    Participant

    Energy prices for millions of Britons will likely rise from April after the energy regulator said it would increase its cap on the most widely used tariffs by around 9.2%.

    A cap on electricity and gas bills came into effect in January 2019 and was aimed at ending what former British Prime Minister Theresa May called “rip-off” prices by energy firms.

    Regulator Ofgem said the rise was needed due to an increase in wholesale energy prices over the past few months and as energy suppliers would be allowed to begin recouping costs relating to the coronavirus pandemic.

    Wholesale gas and electricity prices fell last year as measures to limit the spread of the coronavirus led to a shut down of much of the economy, leading to lower energy demand.

    “Demand for energy has since recovered which has pushed wholesale prices back up to more normal levels,” Ofgem chief executive Jonathan Brearley said in a statement.

    The cap for average annual consumption on the most common tariffs, used by around 11 million households, will rise by 96 pounds ($131) to 1,138 pounds, while for some 4 million homes on pre-payment energy meters it will rise by 87 pounds to 1,156 pounds a year.

    Ofgem calculates the cap using a formula that includes wholesale gas prices, energy suppliers network costs and costs of government policies, such as renewable power subsidies.

    Earlier this week Ofgem said it would include a provision worth 23.69 pounds in the latest cap level to enable suppliers to begin recouping costs relating to the coronavirus pandemic, such as money lost due to defaults on payments.

    Brearley said despite the rise the price cap was likely to be saving customers around 100 pounds a year but said the best way to save the most money was by switching to a cheaper tariff. ($1 = 0.7312 pounds) (Reporting by Susanna Twidale; editing by Jason Neely and Toby Chopra)

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

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  • #139069 Reply
    Wigwam
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    “Ofgem calculates the cap using a formula that includes wholesale gas prices, energy suppliers network costs and costs of government policies, such as renewable power subsidies.”

    These costs amount to 25% of the price we pay for electricity.

    #139548 Reply
    Martinod

    People are struggling as it is , yet big companies are going to put the price up yet again .

    how much profit is enough,   so what do people do they need the gas/electricity no matter what price goes up to . If people are struggling  just know then the price goes up they have a few choice  have to pay the extra by using money from something else usually food or decide not to put the heating on and sit in the cold.

    one of neighbours a disabled lady in her 70s was paying £50 a month and they put the payment up to £65 month side was so worried about it , so what did she do sat in her chair in the cold because she couldn’t afford to have the heating on .

    im not saying heating should be free ( I think it is in other countries for older people) but these complains making millions  of profit and old people free zing to death.

    I just don’t think it fare

     

    #139585 Reply
    Wigwam
    Participant

    Actually Martinod, there’s not a lot of profit for energy companies, it’s a very competitive market but you do have to shop around for deals each year and be prepared to change suppliers.  Anyone paying standard variable tariffs to British Gas and the like will be paying too much.

     

    #139597 Reply
    Donkey Oatie

    Seems like as we go further down the route of electric cars, electric heating replacing oil and gas and wood being banned as a fuel in all but rural areas, we will be more and more at the mercy of the generating companies.

    #139611 Reply
    Wigwam
    Participant

    And the weather, unless we start building nuclear plants.

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