Tuesday, March 28

UK Energy Price Cap Rise Will Hit 22 Million Homes: The Times

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(Bloomberg) — An April increase to the government’s price cap on energy bills will affect more than 75% of British households, according to The Times.

The number of households covered by the price limit has risen to 22 million from 15 million, the newspaper said, citing energy regulator Ofgem.

Standard variable tariffs are capped at 1,277 pounds ($1,731) a year for a typical household until April, while most fixed tariffs now cost 2,000 pounds a year, according to The Times.

An announcement on April’s increase from the UK’s energy regulator Ofgem is set for Feb. 7 and the cap could rise again in October. More than 20 UK energy providers have already collapsed under the strain of ballooning gas prices. Together Energy Retail Ltd., which supplied around 176,000 customers, was the latest provider to fold, entering administration earlier this week.

Energy firms are still split on how to tackle the problems caused by the surge in gas prices, less than three weeks before Ofgem announces a price increase expected to be about 50%. The hike will likely push millions into energy poverty and put further pressure on Prime Minister Boris Johnson.

READ MORE: Top Energy Firms Split on How UK Should Tackle Price Hike

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