janvier 31, 2023


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Inflation could rise to seven percent as households face a hit with £2k fuel bills | United Kingdom | News

Figures from an internal government study estimated that increased energy bills could indirectly lead to a multi-billion pound gap in public finances as higher inflation drives up interest rates. The cap on energy prices is set to rise by up to 50 per cent, with the average cost of gas and electricity for a household in the UK set to exceed £2,000 – nearly £800 – with some households paying multiples of that.

The chancellor and prime minister are set to discuss the energy crisis early next week due to growing concerns about the impact of the price cap.

Business Minister Kwasi Kwarting also held discussions with energy suppliers about possible measures to reduce the increases.

These include an industry-wide « structural fund » that would allow companies to borrow money to keep bills low.

The companies will then repay the money by not cutting bills as fast as wholesale energy prices.

Cash-strapped British energy suppliers are asking the government to guarantee loans to keep the cost of borrowing low. However, the British Treasury is resisting this measure.

Now government ministers are considering suspending environmental and social fees on bills that pay for energy efficiency improvements and some renewable projects, in a way to ease the situation in the short term.

However, this would undermine Boris Johnson’s green credentials and link rising energy costs to a net-zero agenda.

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