The British Energy Market Regulatory Authority, Ofgem, announced today, Wednesday, that energy bills in the country will rise during the summer, as a result of the escalation in wholesale gas prices due to the war in the “Middle East.”
An increase of 13% as of July
The authority said that the price ceiling that energy suppliers can impose on consumers will rise by 13% as of July, which will add about 18 pounds sterling per month, or 24 dollars, raising the average annual gas and electricity bill to about 1,862 pounds sterling.
Disturbances in global energy markets
Ofgem attributed this increase to “turbulence in global energy markets,” even though the summer season usually witnesses a decline in energy demand.
In turn, the Authority’s CEO, Tim Jarvis, said, “The rise in wholesale gas prices, resulting from the ongoing conflict in the Middle East, affects the price we pay for energy.”
The authority indicated that gas prices are still much lower than the levels of the energy crisis that followed the Russian war in Ukraine in 2022.
Expectations of increased pressure on British families
It is expected that rising energy costs will increase inflationary pressures on British households in the coming months, after inflation had declined in April due to lower energy prices before the outbreak of the war.
For his part, British Energy Minister Ed Miliband said, “Raising the price ceiling due to a war we did not choose is completely unwelcome news for families across the country,” adding: “It is necessary to reduce the intensity of this conflict to reduce oil and gas prices.”
It is worth noting that data from the British Office of National Statistics showed a few days ago that the unemployment rate in the United Kingdom rose to 5% during the three months ending in March, compared to 4.9% in the previous period, amid increasing economic pressures related to the aggression against Iran.
