Energy bills in the UK could rise further next year, analysts have warned, after research showed volatile gas prices and a possible collapse of more suppliers could bring the price cap to around £1,660 over the summer.
According to research agency Cornwall Insight, the forecast is about 30 per cent higher than the record of £1,277 set for winter 2021-22, which began in early October.
It comes as the chairman of energy regulator Offgame warned of a “significant” price hike and more failures of the company in light of rising gas prices.
Speaking at the Energy UK conference on Thursday, in what he said was an “unprecedented” time for the energy market, Jonathan Brearley said customers will face “an extremely difficult time” as rising costs “eventually seep through to bills”. is passed”.
He predicted more company failures, telling attendees that the industry had already seen twelve companies fail and that “given the continued volatility of the market, it is likely that more suppliers will exit the market”.
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Sky News’ Ed Conway reports the following:
WATCH: There is ‘no alternative’ to inflation, says Boris Johnson
Firms passing the burden of rising costs on consumers – data
Let’s take a look at the big picture. A survey by the Office for National Statistics (ONS) showed that nearly a third of companies have seen a higher-than-normal increase in costs, as supply chain crises continue to cause chaos in the economy.
While companies are fighting a battle against rising costs of everything from energy to employee salaries, they are resorting to rising price tags to pass on inflationary pressures to consumers.
The ONS survey showed that 10 percent of businesses reported an increase in the prices of goods and services in early September – up from 8 percent in mid-August and 4 percent at the end of December. Statistics show that nearly a quarter of these – 23 percent – were retailers in the wholesale and consumer-facing sectors and 25 percent in the manufacturing industry.
It comes amid rising signs of widespread inflation in the UK, including rising energy prices, rising costs on the forecourt due to recent fuel shortages and a higher rise in prices in the economy.
In retail, the likes of Next and Hotel Chocolate have recently said they are raising prices under cost pressures, with the ONS survey also showing that businesses are struggling to fill vacancies because of staff shortages. Decrease – prices have come down.
Asked about all this at a Conservative Party convention this week, Boris Johnson claimed there was “no alternative” to inflation and suggested the reduction was a sign that the UK economy was “wake up” from Covid and Brexit Was.
Energy prices will continue to rise and more firms will collapse – Offgame
Energy regulator Offgame has warned of “significant” price hikes and more company failures in light of rising gas prices.
Speaking at the Energy UK conference on Thursday, offgame president Jonathan Brearley said customers will face “an extremely difficult time” as rising costs “eventually get passed through on the bills”.
He also warned that the price range would likely increase, adding that “it is designed to reflect reasonable costs and will therefore need to be adjusted over time to reflect changes in fuel prices.” “.
In what he said was an “unprecedented” time for the energy market, Mr. Brearley said more company failures were to be expected, the report said. Holly Bancroft.
‘Significant’ price hikes will continue and energy firms will collapse, warns Offgame
The energy price cap will need to “essentially reflect” rising costs, said Offgame’s president.
Industry owners call for ‘immediate action’ amid supply warnings
National Grid said in a report on Thursday that industry leaders have called for “immediate action” after rising demand and capacity constraints led Britain to suffer less power this winter than last year. Is.
The operator stressed that it expects gas and electricity supplies to meet the country’s needs but warned of a potential major setback to bills.
In a separate report, the operator insisted that there should be no disruption to the gas flames going out despite the lack of energy.
Speaking at the Energy UK conference, Energy and Trade Minister Kwasi Quarteng said the government was confident that supply would meet demand this winter.
But he warned that record wholesale energy prices – which saw nine suppliers go to waste in September alone – “could well look”. [more] Companies are going out of the market.”
Energy bills set to rise 30% in 2022, warn analysts
Research agency Cornwall Insight predicts further volatile gas prices and a possible collapse of even more suppliers could push the energy price cap to around £1,660 in the summer.
This forecast is about 30 percent higher than the record price range of £1,277 set for the winter of 2021-22, which began in early October.
Craig Lowrey, senior advisor to the firm, said: “With wholesale gas and electricity prices reaching new records, frequent supplier exits and a new level for default tariff caps occur during September 2021. [£1,277 for a typical dual fuel direct debit customer] For winter 2021-22, GB energy market remains on edge for fresh volatility and further consolidation.
Energy regulator Offgame acknowledged in a statement to the BBC that it was a “worrisome time for many”:
“The energy price cap covers about 15 million households and will ensure that consumers do not pay more than what is absolutely necessary this winter.
“However, if global gas prices remain high, the level will unfortunately go up when we update the price cap.
“Any customer who is concerned about paying their energy bill should contact their supplier to reach out to the extent of the support available.”
good afternoon and welcome GranthshalaRolling energy crisis coverage. Stay tuned as we bring you the latest updates, as Offgame warns of more failures at the company in light of “significant” price increases and rising gas prices.
Credit: www.independent.co.uk /