UK annual energy bills set to top £5,000

The grim forecast comes as Europe faces the worst power crisis in decades

The average annual energy bill in Britain is expected to top £5,000 (nearly $6,100) in 2023, according to the latest forecast from independent UK energy consultancy Auxilione.

The rise in the UK’s energy price cap, an officially set benchmark, would mean average households would have to spend around £571 on energy each month. Last week, the country’s energy regulator, Ofgem, said the cap would change every three months, instead of the usual six-monthly change, due to high volatility in energy markets.

The UK-based consultancy expects Ofgem to set the cap price at “just over £3,600” when he announces the results of his next review on August 26. The hike would take effect in October before the cap exceeds £5,000 in the first half of 2023, analysts added.

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UK predicts worst-case energy scenario – reports

The latest warning comes three days after consultancy firm Cornwall Insight forecast the January price cap to reach £4,266, and follows a sharp rise in UK wholesale gas prices this week.

Electricity suppliers met ministers in Downing Street on Thursday to discuss solutions to the ongoing crisis, which has been exacerbated by anti-Russian sanctions and a cut in Russian natural gas supplies to Europe.

Although the UK is not directly dependent on Russian gas, it is still suffering from rising energy prices and soaring costs of living. The country is facing its own energy shortages after Norway announced likely restrictions on electricity exports.

“Today the UK government called on energy companies to try and find a way to bring prices down,” said Auxilion. “There seems to be little appreciation of how impossible this task is and neither has control over this in such a globally influenced market.”

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