London, Europe Brief News – The UK has announced an 80% hike in electricity and gas bills, in a dramatic worsening of the cost-of-living crisis before winter.
Regulator Ofgem said on Friday that 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 ($4,198) per year from the current £1,971 ($2,331).
The new cap will be in effect from Oct. 1 to the end of the year, after which it is expected to rise further.
The government is under pressure to announce greater support for households and a wide-ranging plan to oversee the energy supply industry through a time of crisis.
However, the candidates to be the new prime minister have said a comprehensive strategy needs to wait until after the leadership election on Sept. 5.
Worse is expected to come in January, when Ofgem next updates its cap, with average bills predicted to top £5,000 ($5,914) – or more.
“The increase reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the COVID-19 pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe,” Ofgem said.
The announcement sparked an outcry from charities which said financially-squeezed households faced one of the “bleakest Christmases” for years.
