Millions of households in Great Britain are set to experience their highest energy charges in three years this winter, following a 4% increase in the government’s energy price cap from October. This marks the second rise in three months, driven by soaring global energy market prices.
Ofgem, the energy regulator for Great Britain, stated that the new rate will be equivalent to £1,723 annually for a typical household's gas and electricity consumption. This compares to £1,663 for the July to September period, which itself saw a 13% increase due to global energy market prices linked to the war on Iran.
Energy Secretary Miatta Fahnbulleh acknowledged public concerns, stating on Tuesday that the government is “doing everything we can to make them more affordable.” She highlighted the removal of VAT from electricity bills and a £150 reduction from energy bills in the April budget as initial measures.
The rising energy costs have led to renewed calls for government support for vulnerable households, including proposals for increased windfall taxes on energy companies and the introduction of a windfall tax on banks. Paul Nowak, the TUC general secretary, argued that banks could afford to pay more tax to alleviate pressure on working people.