Energy prices in the UK have soared thanks to a big rise in the price cap for domestic customers set by regulator Ofgem. This follows a smaller increase in the price cap in October 2021.
The NGO National Energy Action estimates that 16% of UK homes were already in fuel poverty, and with the price cap rise this will jump to a whopping 24% – almost a quarter of all households unable to adequately heat their homes. That’s 6.5 million households, staggering for a developed country.
The reason for the rise is quite simple: gas is almost four times more expensive than this time last year. The UK is a net importer, and delivery from suppliers such as Norway, Qatar and Russia is significantly more expensive due to a global demand increase over the past year. The gas market is further impacted by European efforts to move away from Russian supplies following the invasion of Ukraine. These issues affect the price of natural gas used for both heating and electricity, since natural gas is also used to generate about a third of Britain’s electricity.
