Monday, December 5, 2022
HomeUnited KingdomRegulated energy price rises to £4300 a year in the UK

Regulated energy price rises to £4300 a year in the UK

The price of regulated energy for an average family will rise in Britain to almost £4,300 a year from around £3,500 currently, UK sector regulator Ofgem said in a statement on Thursday. The British government, which has decided to cap the price consumers pay until April at £2,500, will therefore pay the difference to the energy companies.

In a comment on LinkedIn on Thursday, energy consultancy Auxilione estimated the total cost of energy support for UK households this winter at £23bn. or £950 per household. Energy support has already led to a recovery of around DKK 4 billion. pounds in public borrowing last month.

According to government forecasting body OBR, government energy subsidy spending will cost the government £25 billion from April 2022 to March 2023 and a further £13 billion in the 2023-24 financial year. Critics of this aid, such as the OECD or the IMF, recommended measures more targeted at households in financial difficulty to reduce the bill for the state and ultimately for the taxpayer.

The cost of energy had started to rise from the summer of 2021 with the post-Covid economic recovery in particular, but it has doubled again since the start of the war in Ukraine, which resulted in very strong restrictions on deliveries to Europe of Russian hydrocarbons.

Several British media outlets claim that Prime Minister Rishi Sunak has finally agreed to an information campaign to encourage Britons to save energy, an approach which, according to the British press, was rejected by the short-lived government of Liz Truss, which lasted six weeks between September and October.

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