UK: Britain announced a vast 80 percent hike in electricity and gas bills, in a dramatic worsening of the Cost-of-Living crisis before winter as the UK awaits a new leader.
Regulator Ofgem said its energy price cap, which sets prices for consumers who are not on a fixed deal with their supplier, will in October increase to an average £3,549 ($4,197) per year from the current £1,971, blaming soaring wholesale gas costs after Russia’s invasion of Ukraine.
“The increase (in the cap) reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the COVID pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe,” Ofgem said in a statement. Britain is already suffering from its highest inflation rate since 1982 and is predicted to enter recession later this year.
Britain’s rampant Cost-of-Living has dominated the race to succeed Conservative Prime Minister Boris Johnson, with political opponents accusing him of leading a zombie Government as inflation escalates.
Gas comprises a major part of Britain’s energy mix, with tens of millions of homes relying on gas-powered boilers for their heating.
The University of York has estimated 58 percent of UK households are at risk of fuel poverty by next year. – NDTV