EnergyUK News & Analysis
2 articles
Market Mood
Energy Bills Forecasted to Rise 16% in January
Energy UK, the suppliers' trade body, has called on the government to take immediate action as domestic gas prices rose and forecasts indicate a 16% increase in energy prices in January. This rise will affect about 20 million households on variable tariffs. Energy UK's chief executive, Dhara Vyas, warned of a potential 'second energy crisis' if no action is taken, comparable to the 2022 crisis triggered by Russia's invasion of Ukraine. In October, a 4% price increase took the typical annual energy bill in the UK to £1,723. Consultancy Cornwall Insight forecasts this could rise to £1,999 in January for a typical household. The government has reduced VAT on electricity and canceled some levies, but high wholesale prices driven by international events continue to pressure suppliers. Energy UK is advocating for measures such as targeted support beyond the current £150 Warm Home Discount and a debt relief scheme. These actions aim to mitigate the additional burden of customer debt, which adds an average of £67 a year to bills. For investors, the upcoming energy price forecast signals continued volatility in the energy market.
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Energy UK Calls for £1.9bn Support Scheme Amid Rising Bills
Energy UK has urged the UK government to provide additional support for households needing financial help due to rising energy bills this winter. The organization reported that 2.5 million households may need assistance beyond the existing £150 Warm Home Discount, which has already helped six million customers. A new proposed support scheme could cost £1.9 billion, offering up to £450 to qualifying households. This situation is compounded by the anticipated rise in the energy price cap by 4% announced by Ofgem, which follows a previous increase of 13% in July 2023, impacting ordinary consumers significantly.
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