Photo taken on Jan. 9, 2022 shows a general view of the building where the Office of Gas and Electricity Markets (Ofgem) is located, in London, Britain. TO GO WITH "Roundup: UK households face energy bill crisis as gas prices soar" (Photo by Ray Tang/Xinhua)
LONDON, Jan. 7 (Xinhua) -- As wholesale gas prices in Britain remain more than four times higher than the same time last year, households across the country are facing a soaring energy bill in 2022.
According to the data from the Intercontinental Exchange (ICE), the price of UK Natural Gas Futures is about 220 pence (about 2.99 U.S. dollars) per therm Friday, down from a record of 416 pence (about 5.65 dollars) in December, but remains at high levels. By comparison, the price was only about 50 pence (about 68 cents) at the same time last year.
While the energy price cap is due to be revised by Britain's energy regulator the Office of Gas and Electricity Markets (Ofgem) this February, experts are expecting a rise of around 50 percent in consumers energy bills by April.
"The default tariff energy price cap looks set to rise by 47 percent in April, pushing up Consumer Price Index (CPI) inflation to 6.2 percent," said Samuel Tombs, chief UK economist of Pantheon Macroeconomics, an economic research consultancy.
"The rise will be larger if suppliers are immediately compensated for acquiring failed competitors' customers," Tombs added.
Since last August, more than 20 British energy companies have gone bust as "record global gas prices have exposed the vulnerability of some energy suppliers to price shocks," the Ofgem said.
The Ofgem said they have protected more than 4 million customers as companies have ceased trading by making sure customers have a supplier and that household credit balances are honoured.
Britain's energy industry has called for the government to take urgent intervention to protect consumers from escalating energy bills, but the government has not announced any measures yet.
"The government's new year's resolution should be to prevent a more immediate living standards catastrophe taking place," said Torsten Bell, chief executive of Resolution Foundation, an economic think tank.
"The top priority is to do something about an energy bill surge of 600 pounds (about 814.84 dollars) or more for a typical household, given this will be particularly difficult for those on lower incomes to manage," Bell noted. ■
Photo taken on Jan. 9, 2022 shows a general view of the building where the Office of Gas and Electricity Markets (Ofgem) is located, in London, Britain. (Photo by Ray Tang/Xinhua)
