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1.5m Scots to find out tomorrow about up to 50% energy price rise

Energy regulator Ofgem will tomorrow announce how much bills for around 22 million households can rise from the beginning of April.

The authority said that it would reveal the new energy price cap at 11am.

It had been feared that bills could rise as much as 50% in the spring as the UK faced a “national crisis” over soaring wholesale gas and electricity prices as renewable generation has slumped helped by the lowest Scottish wind speeds of this century.

Trade body Energy UK has called on the UK government to intervene to help cut the cost of bills amid predictions that the price cap could easily reach £2,000 a year.

Calls have intensified in recent weeks for the Government to step in to help struggling households.

In Scotland some 1.5m Scots householders saw their energy bills soar by up to £139 in October after the last price cap hike.

Millions currently have their energy bills capped at £1,277 for an average household. Experts believe that this could rise to around £1,900 from April 1 when the new price cap comes into force.

The energy crisis has deepened across Europe as a shortage of natural gas, nuclear outages, declining wind power output, and cold weather boosted prices. An unusually calm summer meant wind turbines produced less electricity, so fossil fuel power plants had to burn more than normal.

HeraldScotland:

The UK’s price cap on energy bills which stops companies from immediately passing rising costs on to their customers was due to change on April 1 when the industry regulator Ofgem is set to raise the cap dramatically.

While energy wholesale prices continue to climb steeply, the UK’s price cap on energy bills stops companies from immediately passing those costs on to their customers.

Since October 1 the price cap, set by the industry regulator, Ofgem, has been set at a record £1,277.

At the last price cap hike, households that use a default energy tariff to buy their gas and electricity received the sharp increase.

The 12% rise was driven by a surge of more than 50% in wholesale fuel costs with gas prices hitting a record high as global economies recover from the COVID-19 crisis, according to Ofgem.

More than two dozen energy suppliers have gone bust since the start of September, putting thousands of people out of work and leaving millions of homes in limbo as they wait for a new supplier.

The most significant collapse to date has been Bulb, once an energy success story which fell into administration last month.

It comes as the trade association Oil & Gas UK warned about the importance of maintaining natural gas reserves with demand soaring partly due to low winds, cold weather and issues with Russia cutting the gas it supplies to Germany.

 

 

 

 

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