The energy price cap hike is just the start of Labour’s problems
Spectator (UK)AUG 13 2024
The UK's Office of Gas and Electricity Markets (Ofgem) announced that it has increased its cap on energy prices, and therefore gas and electricity prices will jump 10% beginning in October.The UK's Office of Gas and Electricity Markets (Ofgem) announced that it has increased its cap on energy prices, and therefore, gas and electricity prices will jump 10% beginning in October.
Brits will pay an average £12 ($15) extra per month, bringing the average annual cost up from the current £1,568 ($2,071) to £1,717 ($2,268). Annual prices will reportedly still be £117 ($154) lower than before the October 2023, but roughly £500 ($660) more than before Russia invaded Ukraine.Brits will pay an average £12 ($15) extra per month, bringing the average annual cost up from the current £1,568 ($2,071) to £1,717 ($2,268). Annual prices will reportedly still be £117 ($154) lower than October 2023, but roughly £500 ($660) more than before Russia invaded Ukraine.
Ofgem, which cited geopolitical and extreme weather factors for its decision, hinted at other policy changes as well, such as fixed prices for energy deliveries to their homes. However, it noted that low-income households may still bear the brunt of the price hikes.Ofgem, which cited geopolitical and extreme weather factors for its decision, hinted at other policy changes as well, such as fixed prices for energy deliveries to their homes. However, it noted that low-income households could bear the brunt of such changes.
While immediate negative reactions to this policy are understandable, this price cap change is due to geopolitical and environmental factors that the governmen't couldn't prevent. It's also important to note that energy prices in October will be far lower than last October, and hundreds of thousands of can help reduce other economic costs by tapping into their pension credit.
A 10% cap increase is far too high at a time when inflation was just going down and the winter fuel credit has been scrapped. This is likely Keir Starmer's attempt at priming citizens for their future under the Labour Party's wind and solar energy agenda, which will lead to rising costs from importing oil when the sun isn't shining and the wind isn't blowing.