There have been many warnings of an upcoming extreme rise in gas and electricity bills at Brits homes.
According to the BBC, Analysts have predicted that household energy bills could rise by hundreds of pounds next year. The energy price cap has already been increased this October, and Cornwall Insight forecasts it will rise to about £1,660 by next summer.
The Energy Shop, which is a price comparison site, warned citizens to prepare themselves for even further increases in household bills. It said that the next increase in the price cap, due to come in from 1 April 2022, could be £500 or even higher, according to BBC. (mercyhealthplex.com)
The price cap protects consumers from paying more than necessary, but offers no such protections to businesses. If gas prices stay high, the price cap will rise, Ofgem said.
Moreover, higher salaries dedicated to address the lorry driver shortages and other new costs, BBC quoted grocery prices would have to increase as well.
“The spike [in gas prices] that we have seen since January is equivalent to a 550% price increase, which of course destroys any industrial planning,” said chairman of the Northwood Group, Paul Fecher.
Companies could buy gas in advance to safeguard against future price increases to some extent, but not forever, he added.
The crisis may just be mitigated a little. On Wednesday, Russia said it would increase gas supplies to the whole of Europe. UK wholesale gas prices hit a record high then it fell after the Russian intervention, BBC says.