Daily Management Review

UK energy authority to raise energy price threshold for consumers


UK energy authority Ofgem will raise the price threshold for gas and electricity for consumers from April 1 due to a sharp increase in global natural gas prices, the organization said.

The energy price threshold in Britain is set by the authority twice a year for the summer (April to September) and winter (October to March) periods. Suppliers cannot set prices above this maximum.

Ofgem notes that the record rise in global gas prices leads to a 54% increase in the energy price cap.

It is pointed out that the increase is due to a record increase in world gas prices over the past 6 months, with wholesale prices quadrupling over the past year. The measure will affect default rate customers who have not switched to a fixed deal and those who stay with their new supplier after their previous supplier has left the market.

Over the past year, 29 UK energy companies left the market or were placed under special management due to a sharp rise in global gas prices, affecting some 4.3 million domestic consumers.

Rishi Sunak, head of the U.K. Treasury, speaking in Parliament, pointed out that rising gas prices have affected the entire world.

source: bbc.com