The energy price cap hike is just the start of Labour’s problems
Spectator (UK)AUG 20 2024
UK Energy Prices to Jump 10% in October
UK Energy Prices to Jump 10% in October
Above: Prime Minister Sir Keir Starmer and First Minister of Wales Eluned Morgan during a visit to Brechfa Forest West Wind Farm, a clean energy site in Pencader, South Wales Image copyright: WPA Pool/Pool/Getty Images News via Getty Images
The Facts
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 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 could bear the brunt of such changes.
The Spin
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While immediate negative reactions to this policy are understandable, this price cap change is due to geopolitical and environmental factors that the government couldn't prevent. It's also important to note that energy prices in October will be far lower than last October, as Labour is doing everything it can to address the abysmal economy it inherited from the Conservatives.