London (Agencies): UK households are bracing for a significant increase in electricity bills this October, as the energy regulator Ofgem announces a 10% rise in the energy price cap. This adjustment comes in response to escalating wholesale electricity costs for suppliers.
Ofgem’s chief executive, Jonathan Brearley, acknowledged the financial strain this hike will place on many households. “We know that this rise in the price cap is going to be extremely difficult for many households,” Brearley stated, urging those struggling to pay their bills to seek available benefits, particularly pension credit, and to contact their energy providers for additional support.
The upcoming price cap increase, the first since January, will elevate the average annual electricity bill for a British household to approximately $2,250, up from around $2,055. The specific reasons behind the surge in wholesale electricity costs remain undisclosed.
Earlier this month, a consumer advocacy group warned that up to a quarter of British households might be compelled to turn off their heating and hot water this winter due to the revised price cap. The initial estimate for the hike was 9%, slightly lower than the actual increase.
A report from Citizens Advice highlighted that concerns about electricity affordability are particularly acute among households with children (31%) and low-income households (39%). The survey also revealed that 48% of respondents might have to reduce or completely turn off their heating to manage financially through the winter. Additionally, 34% indicated that higher electricity prices would make it challenging to afford essentials such as food, mortgage payments, or childcare.
In a related development, the Labour government has canceled approximately $2 billion in fuel subsidy payments to wealthier pensioners, aiming to address a $29-billion budget deficit.