UK energy prices will rise 20 percent from January, British regulator Ofgem said, although consumers remain under the protection of the state support package which reduces the cost by almost half.
Ofgem regulator (Department of Gas and Electricity Markets), which is responsible for setting the maximum energy price [price cap]indicated that from January 1 unit price rises to £0.67 per kilowatt-hour of electricity and £0.17 per kilowatt-hour of gas, plus flat daily rates of £0.46 for electricity and £0.28 for gas.
These prices are valid for three months, until the end of March, and are determined in accordance with the cost of natural gas on international markets.
According to the organisation, average annual household energy costs will increase from £3,549 (€4,115 at current exchange rates) to the current £4,279 (€4,961), a difference of 20.6%.
In January 2021, the maximum UK energy price was set at £1,277 (€1,480), a 235% increase in 12 months. largely due to the impact of the war in Ukraine🇧🇷
In September, the Government introduced a package “energy price guaranteeto keep prices averaging £2,500 (€2,900) until the end of March, rising to £3,000 (€3,478) in April.
However, while consumers are protected from today’s announcement, the government will have to spend more to pay for the support package, which is estimated to cost around £120,000 million (€140,000 million) between 2022 and 2023.
Given the weight of the measure on public accounts, Treasury Secretary Jeremy Hunt on Wednesday urged Britons to cut consumption if they want to avoid higher taxes.
“In the long term, we will need everyone to help us solve this problem if we are not going to impose a huge additional burden on taxpayers, which ultimately lead to such high taxes which I definitely do not see as desirable in the long term,” he warned during a hearing before the parliamentary finance committee.
Hunt set the national goal of reducing energy use by 15% as a “national mission” and urged the British to “change their behaviour”.