Energy prices rise by 80 percent


Gas storage in the UK

The costs of gas and electricity are regulated in Great Britain by a price cap and adjusted quarterly to the market situation.

(Photo: Getty Images)

London consumer in Great Britain have to prepare for an enormous jump in gas and electricity prices in October. Annual energy bills for the average UK household are allowed to rise by 80 per cent to £3549 (€4187). This was announced by the state regulatory authority Ofgem on Friday morning.

The costs of gas and electricity are regulated in Great Britain by a price cap and adjusted quarterly to the market situation. Ofgem boss Jonathan Brearly said: “We expect that prices will continue to rise in winter.” He did not want to commit himself to a number. Energy agency Auxilione forecasts that prices could climb to more than £6,000 per year for an average household by April 2023. This means that the costs for electricity and gas have increased almost fivefold within a year.

Brearly attributed the jump in prices to the war in Ukraine and to the fact that Russia was gradually turning off the gas supply in response to the West’s economic sanctions. Gas prices today are 15 times higher than before the crisis”, said the UK price watchdog on market prices. It is now up to the new prime minister to mitigate the impact of soaring prices on consumers.

British Foreign Secretary Liz Truss, who is considered the favorite to chair the ruling Conservative Party and thus to succeed Prime Minister Boris Johnson, is under pressure to act.

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Under pressure from the public, Truss has now apparently changed its previously negative stance on direct financial aid. British media reports unanimously that they are preparing a multi-billion dollar aid program that is primarily intended to help low-income families.

Northern Ireland Protocol appears to be on the brink

The decision on the new prime minister will be announced on September 5th. According to reports in British newspapers, Truss is also considering that Northern Ireland Protocol to the Brexit Treaty to suspend with the EU.

Liz Truss

The British politician is considered the favorite to chair the ruling Conservative Party and thus to succeed Prime Minister Boris Johnson.

(Photo: Bloomberg)

Article 16 of the protocol should be used for this, which gives both contracting parties the option of unilaterally terminating the contract if the agreement leads to serious economic or social consequences.

The Northern Ireland Protocol governs trade between the Province of Northern Ireland, which remains economically part of the EU single market, and the rest of Great Britain. The British see the protocol and the associated customs controls endangering the free movement of goods with Northern Ireland.

As Foreign Secretary, Truss has already tabled legislation in the British Parliament that would allow ministers in London to overrule parts of the protocol. The EU has already sued the UK government for breach of contract and has threatened trade sanctions if London unilaterally pulls out of the protocol.

More: Inflation in the UK – Many households at risk of falling into “fuel poverty”.



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