(Bloomberg) — U.K. energy bills are expected to rise this winter as the cost of natural gas has surged worldwide due to supply risks.
The forecast by consultancy Cornwall Insight Ltd. means bad news for British consumers, who are already struggling with the cost of living crisis and record-high energy debt.
The typical tariff will rise 9 percent to £1,714 ($2,221) from October 1, Cornwall said, with a further increase expected early next year. Ofgem will announce the new energy price cap, which is equivalent to a typical household’s annual bill, on Friday.
European gas futures have risen by more than 20 percent this year, with traders fearing that supplies could be restricted at any time due to the war in Ukraine and the risk of an escalation of the conflict in the Middle East.
“The ongoing impact of the energy crisis has left us with a market that is still very volatile and reacts quickly to bad news on supply,” said Craig Lowrey, senior advisor at Cornwall.
Making matters worse for British consumers, hundreds of thousands of pensioners are expected to be ineligible for a subsidy called the Winter Fuel Payment, as new rules mean that only those on income-related benefits will be eligible.
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