Fuel prices doubled, millions of Britons pushed to the brink of crisis
Increase the ceiling price to a record level
Energy bills in the UK are expected to rise after Ofgem, the country’s energy regulator, announced it would raise the price ceiling to a record 54 per cent from April 1. Ofgem’s price cap will limit how much UK households can pay for energy services and is reviewed twice a year.
Before Friday, the average household’s annual energy bill cap was between £1,277 ($1,676) and £1,370. However, under the new price cap, millions of households could see their energy bills rise by around £700 a year.
According to the Resolution Foundation’s press conference on Friday, low-income households will be hardest hit by the price increase. The poorest 20% of households will spend 10% of their budget on energy bills, while the richest 20% of households will spend 4% of their budget on energy.
Prices in the UK are rising after wholesale natural gas prices hit a record high in Europe last year, caused by a number of problems including low inventories and limited access to Russian energy. .
The UK has been particularly hard hit by soaring gas prices due to its heavy reliance on gas as an energy source. The problem has exacerbated Britain’s worst cost-of-living crisis in decades.
British Finance Minister Rishi Sunak announced in February that all residential electricity customers will receive a £200 discount on their electricity bills from October, then will be paid in installments of £40 over the course of the month. 5 years.
He also announced that the majority of households would receive a £150 reduction in the house tax – a tax paid by households based on the value of their home.
Energy bills can go even higher
The conflict in Ukraine and Western sanctions have created volatility in energy markets and could threaten further price and supply uncertainty in the future.
With Russian President Vladimir Putin demanding payments for Russian gas in rubles, some energy analysts have warned that European countries – including Britain – may be forced to look elsewhere.
In recent days, Mr. Putin has warned that if “unfriendly” countries refuse to pay in rubles on Friday, their gas purchases will be halted. Moscow still allows Western payments through Gazprombank, which has not been sanctioned by Europe, in euros or dollars. However, Britain has sanctioned Gazprombank so there will be no way to pay for gas purchases to Russia.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
