Business & Economy

Energy prices in the UK rises by 80 percent

London, Aug 26 (EFE).- The maximum price of energy that companies in the sector can charge to households in the United Kingdom per year from Oct.1 has been fixed at 3,549 pounds ($4,182), an 80 percent increase over the current limit, energy regulator Ofgem announced Friday.

The maximum price is currently 1,971 pounds per year per household.

This sharp increase is expected to further trigger British year-on-year inflation, which currently stands at 10.1 percent but could reach 13 percent or more by the end of the year.

This cost of living crisis has led to numerous strikes across various sectors on Friday, including the postal system, dockers and railway workers, in demand of wage increases to deal with this situation.

The current price limit will remain in force until Dec.31, when a new rate will be set.

The exponential increase in energy coincides with the absence of concrete measures on the part of the government, which has underlined that any decision will be in the hands of the new prime minister who will replace Boris Johnson on Sep.6.

Ofgem CEO Jonathan Brearley has urged the next prime minister – Lis Truss or Rishi Sunak – to adopt an urgent response to the continued rise in prices.

Chancellor of the Exchequer Nadhim Zahawi said Friday that the energy price rise will cause “stress and anxiety for many people,” but the government was working to find ways to help households in this regard.

The energy hike comes as a result in the rise in wholesale gas prices globally as economies around the world reactivate after the pandemic and also because of the war in Ukraine.

Johnson stepped down in July after several members of his government resigned in protest against his management, leading to a process to decide on the next British prime minister which is expected to conclude on Sep.5.

The new prime minister will take office on Sep.6 and appear before the House of Commons the following day. EFE


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