Energy Prices Set To Rise

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Energy Prices Set To Rise

Energy Prices Set to Rise

Experts believe the energy prices may rise by about 50 percent and would impact 22 million households from April 1 with the new price cap on energy bills for another six months. The decision is still due from Ofgem and meanwhile energy consultancy Cornwall Insight comments the bills could hit 1,915 pounds. The previous expectation was 1,995 pounds. However, the new cap will be a blow to households as living expenses have increased lately. Cornwall adds the cap may further rise to 2,329 pounds for the next six months from October.

The announcement was meant to be revealed on Monday, but it has been moved to Thursday. The rise is mainly due to an increase in global gas prices and the government is being repeatedly requested to step in and protect households from the burden. Meanwhile, it is being reported the ministers are working on a strategy to back the energy companies with loans of about 6 billion pounds.

The companies need to pass on the fund to households and around 200 pounds can be saved on energy bills as rebates. Moreover, targeted help like the Warm Home Discount Scheme can be expanded.

The 6 billion backings is considered low and a figure of 20 billion pounds is being talked. If the gas prices remain upward, the bills may rise further. Experts believe the high energy prices may remain for about a couple of years.

If the prices dip, the scheme means not passing the costs to customers until the loans are repaid. It is learned the ministers may announce additional help for poorer households.

The rise in energy prices means an overall spike in living expenses. Meanwhile, inflation reached 5.4 percent in December and it has sparked a crisis even without the spike in energy bills.

Energy UK boss Emma Pinchbeck said the new price cap can be worrying news for millions of households and there are several ideas are under discussion to reduce the energy bills. However, it is an urgency that the government steps in and save the households.

He further added that the suppliers have been financially assisting with hundreds of millions of pounds since the COVID-19 pandemic started in 2020 and it would continue to help the households who are struggling with the energy bills.

He mentioned the government needs to make a real difference and protect the wider economy if the international gas prices are high.

Good Energy chief executive Nigel Pocklington said the government is considering the removal of policy costs on the bills and this could save about 190 pounds for households.

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