Iran Press/ Europe: The United Kingdom has announced an 80-percent hike in electricity and gas bills, in a dramatic worsening of the cost-of-living crisis before winter as the country awaits a new leader.
Regulator Ofgem said on Friday that its energy price cap, which sets prices for consumers who are not on a fixed deal with their supplier, will in October increase to an average £3,549 ($4,198) per year from the current £1,971 ($2,331).
Worse is expected to come in January, when Ofgem next updates its cap, with average bills predicted to top £5,000 ($5,914) – or more.
“The increase reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the COVID-19 pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe,” Ofgem said.
The announcement sparked an outcry from charities which said financially-squeezed households faced one of the “bleakest Christmases” for years.
Double-digit inflation
UK inflation is already in double-digits and forecast to reach 13 percent in the coming months due to soaring energy bills.
Inflation is at its highest level since 1982, with industrial action over pay growing and the country is predicted to enter recession later this year.
The near-doubling in the energy cap will likely tip millions into fuel poverty, forcing them to choose between heating or eating, anti-poverty experts say.
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