– Energy prices for millions of Britons are rising from Friday in line with an increase to the cap on the most widely used tariffs of about 12-13%, due to soaring global gas prices.
“Today, the latest price cap, which we announced back in August, is set at 1,277 pounds ($1,721.01). This is the amount that an average household will pay for both gas and electricity,” Ofgem’s deputy director for retail, Anna Rossington, said in a video posted on Twitter.
The cap on electricity and gas bills came into effect in January 2019 and was aimed at ending what former British Prime Minister Theresa May called “rip-off” prices charged by energy companies.
The latest increase reflected the rise in energy costs seen earlier this year, and the ongoing “unprecedented” increase in global gas prices in recent weeks has put financial strain on suppliers, Rossington said.
Prices have risen to record levels and a number of smaller suppliers in Britain have gone out of business.
“Around 15 million households are covered by the energy price cap and if your supplier goes out of business, this is the tariff that you’ll be transferred to with your new supplier,” Rossington said.
($1 = 0.7420 pounds)