AIRLINK 204.45 Increased By ▲ 3.55 (1.77%)
BOP 10.09 Decreased By ▼ -0.06 (-0.59%)
CNERGY 6.91 Increased By ▲ 0.03 (0.44%)
FCCL 34.83 Increased By ▲ 0.74 (2.17%)
FFL 17.21 Increased By ▲ 0.23 (1.35%)
FLYNG 24.52 Increased By ▲ 0.48 (2%)
HUBC 137.40 Increased By ▲ 5.70 (4.33%)
HUMNL 13.82 Increased By ▲ 0.06 (0.44%)
KEL 4.91 Increased By ▲ 0.10 (2.08%)
KOSM 6.70 No Change ▼ 0.00 (0%)
MLCF 44.31 Increased By ▲ 0.98 (2.26%)
OGDC 221.91 Increased By ▲ 3.16 (1.44%)
PACE 7.09 Increased By ▲ 0.11 (1.58%)
PAEL 42.97 Increased By ▲ 1.43 (3.44%)
PIAHCLA 17.08 Increased By ▲ 0.01 (0.06%)
PIBTL 8.59 Decreased By ▼ -0.06 (-0.69%)
POWER 9.02 Decreased By ▼ -0.09 (-0.99%)
PPL 190.60 Increased By ▲ 3.48 (1.86%)
PRL 43.04 Increased By ▲ 0.98 (2.33%)
PTC 25.04 Increased By ▲ 0.05 (0.2%)
SEARL 106.41 Increased By ▲ 6.11 (6.09%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 42.91 Increased By ▲ 0.58 (1.37%)
SYM 18.31 Increased By ▲ 0.33 (1.84%)
TELE 9.14 Increased By ▲ 0.03 (0.33%)
TPLP 13.11 Increased By ▲ 0.18 (1.39%)
TRG 68.13 Decreased By ▼ -0.22 (-0.32%)
WAVESAPP 10.24 Decreased By ▼ -0.05 (-0.49%)
WTL 1.87 Increased By ▲ 0.01 (0.54%)
YOUW 4.09 Decreased By ▼ -0.04 (-0.97%)
BR100 12,137 Increased By 188.4 (1.58%)
BR30 37,146 Increased By 778.3 (2.14%)
KSE100 115,272 Increased By 1435.3 (1.26%)
KSE30 36,311 Increased By 549.3 (1.54%)

LONDON: UK energy regulator Ofgem on Thursday announced that the price cap on how much suppliers can charge consumers will rise by 54 percent due to soaring wholesale gas prices, sending bills spiralling.

The regulator announced the energy price cap for those not on a fixed deal with their supplier will rise by £693 ($939, 832 euros) to £1,971 in England, Wales and Scotland from April.

Northern Ireland has a separate regulator and has also announced sharp hikes in average household gas bills.

UK inflation rose to a near 30-year high in December and the rise in household bills will stoke further fears about a cost-of-living squeeze, with government tax rises also planned for April.

"We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can," said Ofgem chief executive Jonathan Brearley.

"The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event," he added.

"Ofgem's role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas."

Russia warns of power price spike if energy transition is hasty

The soaring wholesale prices are blamed on a cold European winter in 2020-2021, which put pressure on supplies, increased demand from Asia for liquefied natural gas and a number of broader geopolitical issues.

The cap is reviewed every six months, and the new regime will come into force from April 1.

The government has been urged to take action, and finance minister Rishi Sunak was expected to announce a support package, including rebates for poorer households, according to The Times.

Prime Minister Boris Johnson, already rocking over lockdown-breaking parties in his Downing Street office, is under pressure to get the cost-of-living crisis under control.

Adding to the problem, the Bank of England was on Thursday expected to raise interest rates from 0.25 percent to 0.5 percent as it attempts to tame rampant inflation.

Richard Walker, managing director of supermarket chain Iceland, told BBC radio that 2022 "is probably set to be the hardest year ever for many UK families".

"We are talking about energy prices and costs directly affecting consumers but that is also going to have a huge knock-on effect for businesses too. In terms of grocery retail, every supermarket will be raising its prices," he said.

Comments

Comments are closed.