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21 Aug, 2022 13:43

UK energy bills to skyrocket

Another grim forecast comes as Europe struggles with the worst power crunch in decades
UK energy bills to skyrocket

The average British household can expect to see annual energy bills soar to £6,000 (nearly $7,100) in 2023, according to the latest outlook issued by the UK independent energy consultancy Auxilione on Saturday. 

The analysts project that the price cap on bills, an officially set reference point, could reach £6,089 as soon as next April. The cap currently stands at £1,971 but is expected to climb to £3,576 in October and £4,799 in January. Last October, it was set at £1,400 ($1,653). 

Earlier this month, the UK energy industry regulator Ofgem announced plans to adjust the cap quarterly rather than every six months due to the volatility in energy markets. 

The latest figure represents a substantial increase to what was already a gloomy forecast made last week, when the consultancy projected annual average energy bills growing to more than £5,000 (nearly $6,100) next year. 

Auxilione expects bills to peak at over £6,000 in April before slowly decreasing in the second half of next year, eventually coming down to £5,160 in October. 

According to the latest poll by Opinium, about 40% of respondents said they would not be able to afford the rise in the cap due to be announced by the energy regulator Ofgem without falling behind on other essential bills.

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