Energy Price Cap to Rise by 5% for British Households
The energy price cap in Great Britain is set to increase by 5 percent in the first quarter of 2024, leading to higher bills for households, announced energy regulator, Ofgem, yesterday. The cap, which determines the maximum amount that can be charged to British customers for energy bills, will see typical households paying up to £1,928 ($2,415) per year. Currently, the cap stands at £1,834 per year. Ofgem attributes this increase to the escalating expenses in the international wholesale energy market, primarily fueled by market instability and global events, including the ongoing conflict in Ukraine.
According to Ofgem, an average household in England, Scotland, and Wales is projected to consume 2,700 kilowatt-hours (kWh) of electricity and 11,500 kWh of gas annually. With energy bills already posing a significant financial burden, this price hike comes at a challenging time for many people. Jonathan Brearley, Chief Executive Official of Ofgem, expressed understanding of customers’ concerns and stressed the importance of providing them with adequate support.
In the past, soaring energy prices played a significant role in surging inflation, significantly impacting British households. Although energy prices have since decreased from their peak levels last winter, they are still a cause for financial worry for many.
As the energy price cap is set to rise further, it is essential for customers to be aware of the impact on their bills. Taking steps to reduce energy consumption and exploring alternative suppliers may help alleviate the financial strain.
