UK Energy Price Cap Could Soar 42% to GBP2,800, Regulator Says
24 Mayo 2022 - 9:25AM
Noticias Dow Jones
By Joe Hoppe and Jaime Llinares Taboada
The U.K. energy price cap is likely to rise in October to
somewhere in the region of 2,800 pounds ($3,525) per year, the
energy regulator's Chief Executive Jonathan Brearley said
Tuesday.
The U.K. Office of Gas and Electricity Markets' CEO said to the
U.K. Government's Business, Energy and Industrial Strategy
Committee the increase would follow the expiration of the current
cap of GBP1,971 on Sept. 31, representing an increase of GBP829 or
42%. This price, which affects around 22 million customers, will
last until the end of March 2023.
The current summer cap of GBP1,971 is already a rise of 54%, or
GBP693, from the previous cap of GBP1,277 in the 2021-22
winter.
"This is uncertain, we're only part-way through the price cap
window, but we're expecting a price cap in October in the region of
GBP2,800," Mr. Brearley told the committee.
The current price cap rise, from an initial GBP1,277, reflected
significantly higher gas and power prices. Mr. Brearley said to the
committee that conditions have since worsened in the global gas
market following Russia's invasion of Ukraine, and gas prices were
now higher and very volatile.
Ofgem reviews the price cap twice a year to reflect wholesale
energy prices and other costs that companies face. The regulator
has proposed to move to quarterly updates going forward.
Mr. Brearley said to the committee that beyond the expected
price increase, Ofgem sees two extreme versions of events
potentially affecting the cap. The first scenario, such as peace in
Ukraine, would lead to a reversal of price increases, and in the
second scenario prices would rise even further, if there were a
disruptive interruption of gas supply from Russia, for example.
"The price changes we have seen in the gas market are genuinely
a once-in-a-lifetime event not seen the oil crisis in the 1970s,"
Mr. Brearley said.
Write to Joe Hoppe at joseph.hoppe@wsj.com and Jaime Llinares
Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT
(END) Dow Jones Newswires
May 24, 2022 10:10 ET (14:10 GMT)
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