UK HOUSEHOLDS STRUGGLE AS ENERGY PRICE CAP INCREASES – The cap on household energy bills has surged by 600 pounds
Millions of UK households are said to be struggling with rising energy costs after the government raised the energy price cap by around 10 percent.
The Office of Gas and Electricity Markets (Ofgem), the UK’s energy regulator, raised the cap again by 1.2 percent on January 1, further increasing household bills and worsening financial hardship for many amid the harsh winter months.
“Of course it’s (high heating fee) a struggle, absolutely struggle. I’ll only have it (heater) on low, and it’ll be cold in here,” said London resident Elaine Yates, explaining that she has to use the low-temperature mode on her heater to afford the bill.
Compared to pre-Ukraine conflict levels in February 2022, the cap on household energy bills has surged by 600 pounds.
Speaking on this, Matilda Long, a household finance expert said “This comes after three years of pretty painful price increases for households. So inflation has come back down, we’re now close to that two percent number that the Bank of England is hoping for. But the cumulative effects of those last three years of rising prices means that the cost of things is really punishing for households.”
As Europe’s second-most gas-reliant country for heating and fifth for electricity generation, the UK remains highly vulnerable to gas price volatility. Analysts predict that the energy price cap could rise by another 3 percent in April, further deepening the financial strain on households.
