After the increase in the price cap per kilowatt-hour in April, the annual bill for a typical UK household’s energy consumption is now £1,971 (€2,353).
London, Thanasis Gavos
The cost of energy consumption for UK households could reach even higher levels than the “extremely high” predicted a few months ago, according to analysts.
After the increase in the ceiling on the price of the kilowatt hour in Aprilnow the annual bill for a typical UK household’s energy consumption is £1,971 (€2,353).
The forecast for the next increase in the kilowatt-hour charge cap, announced by regulator Ofgem for October, says the annual bill will rise to £2,800 (€3,341).
However, the latest estimate from utilities consultancy BFY Group says the rise will ultimately be 74%, pushing the average annual charge for each household in October to £3,420 (€3,865), up from a a further increase to 3,850 pounds in January (4,592 euros).
For the month of January alone, the BFY Group predicts an average bill of 500 pounds per household (596 euros).
The latest estimate cites the impact of Russia’s move to reduce the flow of natural gas to Europe, an impact consisting of higher prices on the wholesale energy market.
The UK imports less than 5% of the gas it consumes from Russia, but is vulnerable to price fluctuations in the wholesale market.
The cap on UK household energy consumption is renewed every six months, but this period is to be reduced to three months.
Adding to the picture is the possibility of limited power supply capabilities in winter, warned by the UK’s largest electricity and gas grid owner and operator, National Grid.
This possibility is created by the expected reduction in production or the possibility of exporting electricity from countries such as France, Belgium and the Netherlands.
View the news feed and get the latest news.
