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12 Aug, 2022 09:30

UK annual energy bills likely to soar above £5,000

The grim forecast comes as Europe is facing the worst power crunch in decades
UK annual energy bills likely to soar above £5,000

The average annual energy bill in Britain is expected to surge above £5,000 (nearly $6,100) in 2023, according to the latest forecast issued by the UK independent energy consultancy Auxilione.

The rising UK energy price cap, an officially set reference point, would mean that average households are likely to spend some £571 on energy every month. Last week, the country’s energy industry regulator Ofgem said the cap would change every three months, instead of the usual six-monthly change, due to high volatility in energy markets.

The UK-based consultancy expects Ofgem to set the price cap at “just over £3,600” when it announces the results of its next review on August 26. That rise would take effect in October before the cap is expected to exceed £5,000 in the first half of 2023, the analysts added.

The latest warning comes three days after consultancy firm Cornwall Insight projected January’s price cap to hit £4,266, and follows a steep rise in wholesale British gas prices this week.

On Thursday, electricity providers met with ministers in Downing Street to discuss solutions to the current crisis, which has been exacerbated by anti-Russia sanctions and a decrease in Russian natural gas supplies to Europe. 

While the UK is not directly dependent on Russian gas, it is still suffering from mounting energy prices and surging living costs. The country is facing its own energy shortages after Norway signaled probable restrictions on electricity exports.

“Today the UK Government has called energy companies in to try and find a way to bring down prices,” Auxilione said. “It seems there is little appreciation just how impossible that task is and neither have control over this in such a globally-influenced market.”

For more stories on economy & finance visit RT's business section

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