Filenews 28 July 2022
The cost of energy consumption for households in the UK may reach levels even higher than the "extremely highs" predicted a few months ago, according to analysts.
Following the increase in the cap on the price of kilowatt-hour in April, the annual bill for a typical energy consumption in a British household now stands at £1,971 (€2,353).
The forecast made for the next increase in the charge cap per kilowatt-hour, announced by the competent regulator Ofgem for October, says the annual bill will be increased to £2,800 (€3,341).
However, a new estimate from the consulting firm of the utilities sector BFY Group says that in the end the increase will be of the order of 74%, bringing the average annual charge for each household in October to £3,420 (€3,865), before another increase to £3,850 pounds in January (€4,592).
For the month of January alone, the BFY Group provides for an average bill of £500 per household (€596).
The newest estimate cites the impact of Russia's move to reduce the flow of gas to Europe, an impact consisting of an increase in prices in 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 charges for energy consumption by British households is renewed every six months, but this period is set to be reduced to three months.
The picture is weighed down by the possibility of limited power supply capabilities in the winter, which was warned by the UK's largest company owning and operating electricity and gas distribution networks, National Grid.
This possibility is created by the expected reduction in production or the possibility of importing electricity from countries such as France, Belgium and the Netherlands.
CNA
