London, Thanasis Gavos
The charge ceiling for energy consumption for British households is expected to rise further from 1 October at around 2,800 pounds (3,264 euros) per year.
The announcement of the new shock increase in energy costs was made before a parliamentary committee by the CEO of the competent regulatory authority Ofgem Jonathan Brirleyconfirming the most ominous forecasts of analysts.
The billing ceiling applies to the majority of British households, ie approximately 24 million homes subject to the basic tariffs of variable charges of energy supply companies.
This had a charge limit increase in early April by 54% at 97 1,971 (€ 2,999) a year, in an effort to alleviate pressure on the energy industry from rising wholesale energy prices. As of August 2021, about 30 small and medium-sized energy companies in Britain have filed for bankruptcy.
Mr Brilly told lawmakers he feared “conditions on the world gas market have deteriorated with the Russian invasion of Ukraine”.
As he explained, the wholesale prices of natural gas have reached up to ten times the normal levels and the situation is very fluid.
“I know this is a time of great upheaval for the customers, but I have to be clear to the committee and to the customers and to the government about the possible price complications for October. That is why later today I will send a letter to the Minister of Finance to give him our latest estimates for the increase of the billing ceiling “, said the head of the independent regulatory and supervisory authority of the energy sector in Britain.
He estimated that in the medium term prices could either return to normal levels, e.g. with a peace in Ukraine or increase even more, e.g. with some Russian intervention that will cause further market disruption.
As Mr Brillley pointed out, “the current situation is really something that it happens once in every generation“something we have not seen since the oil crisis of the 1970s.”
Weeks ago, Ofgem announced a possible consultation adjust the energy billing ceiling every three months instead of six months. The rationale is that any price reductions would pass faster to consumers, but critics argue that households may instead see more frequent increases.
Prime Minister Boris Johnson’s spokesman reacted to Ofgem’s announcement by assuring that the government was “actively looking to see what more could be done” to reduce energy bills.
Opposition workers were quick to reiterate their strong demand for an emergency state budget and, above all, a one-off tax on energy companies. “How many more bells does the Minister of Finance have to hear before acting?” wondered on Twitter the shadowy Minister. Finance Rachel Reeves.
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