Triple Blow to Households
Electricity bills could rise by 25% from January, costing a typical household more than £2,000 a year. Economists’ alarming forecasts have sparked a strong public reaction.Rising wholesale energy prices due to the conflict in the Middle East have already led to a 150% surge in UK gas futures. As a result, the average family will face a 4% increase in electricity bills in October, pushing them to their highest level in three years. But the real blow to households will come in January: according to energy company EOn, prices will jump by 25% from their current level. This means the electricity price cap will rise by more than £300 to £2,027. ''Millions are already burdened by energy debt and cutting back - and that’s before the cold weather. Energy bills jumping by a quarter during the coldest months would have a huge impact'', - said Matt Copeland, a representative of the National Energy Action charity.
The Promise Was Broken
Social media users have already recalled that Ed Miliband, who served as Energy Secretary, promised that electricity bills would fall by £300 by the end of the parliamentary term. Instead, millions of households will face yet another increase.
Businesses Face Disaster
Experts also write that the consequences of the energy shock will be far more serious. While household electricity prices are at least subject to some limits, there is no cap for businesses. And this will simply destroy many companies.
Thus, the Labour government’s inept policies are making the crisis in the country even worse. Ordinary citizens will suffer not only from rising electricity bills.
Economists warn that households face a triple blow in the near future: rising electricity prices, higher mortgage rates and another painful tax increase. Chancellor of the Exchequer John Healey has already announced it.