Market News
UK Energy Bills Set to Rise This Winter on Higher Gas Prices - BLOMBERG
(Bloomberg) -- UK energy bills are poised to increase through the winter, as the cost of natural gas has jumped because of risks to supplies around the world.
The forecast from consultancy Cornwall Insight Ltd. spells bad news for British consumers already struggling with the cost of living crisis and record energy debt levels.
The typical tariff will rise 9% to £1,714 ($2,221) from Oct. 1, according to Cornwall. The firm expects a further increase at the start of next year. Ofgem will on Friday announce the new energy price cap, which represents an annual bill for a typical household.
European gas futures have surged more than 20% this year. Traders fear that supplies could be curbed at any time because of the war in Ukraine and the risk of the escalation of the conflict in the Middle East.
“The lingering impact of the energy crisis has left us with a market that’s still highly volatile and quick to react to any bad news on the supply front,” said Craig Lowrey, principal Consultant at Cornwall.
To make matters worse for UK consumers, hundreds of thousands of pensioners are set to miss out on a subsidy known as the Winter Fuel Payment, with new rules meaning only those on means-tested benefits being able to claim.
