Families face record hikes in energy bills this year, analysts warn

by in News

Electricity and gas bills for UK households could hit a record high of £2,255 this year, with energy prices soaring in April and October.

Commercial energy consumers will also be affected according to Gareth Miller, the chief executive officer at Cornwall Insight.

“The current energy crisis is of economy-wide concern, having a potential impact on business competitiveness, general inflation, and household affordability,” he said

Miller said the government need to steer clear of “quick fixes” and consider low-carbon technologies to lessen the impact of rising fossil fuel costs, and homegrown gas supplies as the UK is more vulnerable to price fluctuations due to its reliance on importing natural gas.

The rise, which will result in cost-of-living issues for many households, is led by increasing gas prices and the electricity prices follow because of gas being used as a fuel used to generate it. It has also been triggered by an increase in global demand following the pandemic and colder weather in some areas.

A number of solutions have been proposed to ease the impact of the crisis and are being considered by the Government. These include a windfall tax on North Sea oil and gas companies, a reduction of green levies on energy bills, a temporary increase to universal credit, and an expansion of the Warm Homes Discount.

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