UK energy crisis: Bills may soar 30% in 2022, as Ofgem warns more firms will collapse as prices spiral

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Gas price hikes: Will my energy bills rise?

Energy bills could rise further in the UK next year, analysts have warned, after research showed volatile gas prices and the potential collapse of more suppliers could push the price cap up to about £1,660 come summer.

The forecast is around 30 per cent higher than the record £1,277 figure set for winter 2021-22, which began at the start of October, according to research agency Cornwall Insight.

It comes as the chair of energy regulator Ofgem warned of “significant” price rises and more company failures in light of soaring gas prices.

Speaking at the Energy UK conference on Thursday, at what he said was an “unprecedented” time for the energy market, Jonathan Brearley said customers will face “an extremely difficult time” as rising costs “are ultimately passed through to bills”.

He also predicted more company failures, telling attendees the industry had already seen twelve companies fail and that “given the continued volatility of the market it is likely that more suppliers will exit the market”.

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Key points

• Energy bills set to rise by 30% in 2022, analysts warns...
• ...as Ofgem says costs will continue to soar and more firms will collapse
• Russia claims it can boost gas supplies to Europe
• Where does Britain gets its gas from and why does Russia matter?
• Government ‘hasn’t moved fast enough on energy efficiency’ – Miliband
• Firms ‘increasingly’ passing on soaring costs to consumers, data shows

[7 October 2021 16:52 · Sam Hancock]

Watch: ‘Nobody’ will be pushed into poverty by UC cut – minister

[7 October 2021 17:06 · Sam Hancock]

Where does Britain gets its gas from and why does Russia matter?

A major hike in global gas prices has sparked alarm in the UK about the stability of the country’s supply as the temperatures drop and winter demand kicks in.

National Grid Gas Transmission – the company that owns, manages, and operates the network – has said Britain will have a “positive supply margin”, meaning it can access more gas than is being used during peak demand. But that has not stopped concerns being raised about possible shortages during the period between October and the end of March when the system is under the greatest strain.

Wholesale gas prices surged to a record high on Wednesday, although they dropped back after Russian president Vladimir Putin said the country would stabilise the market.

So where does the UK get its gas from, and how important is Russia to the global supply chain? Tom Batchelor takes a closer look.

[7 October 2021 17:33 · Sam Hancock]

Twitter criticises PM over business supply issues

[7 October 2021 17:57 · Sam Hancock]

Watch related video: Russia says it may sell a record amount of gas to the EU

[7 October 2021 18:25 · Sam Hancock]

Petrol: 13% of filling stations in London remain empty

More than one in eight petrol stations in and around London remain empty despite fuel shortages beginning to ease elsewhere, according to an industry boss.

The Petrol Retail Association (PRA) said its daily poll showed 13 per cent of independent retailers in the capital and southeast - the region worst hit by the crisis - were still dry on Wednesday.

The figure is an improvement on Tuesday’s 15 per cent and Sunday’s 22 per cent, however some forecourts have been left waiting four days for delivery, reports Chiara Giordano.

[7 October 2021 18:50 · Sam Hancock]

Public opinion on govt’s handling of economy ‘negative’ – YouGov

The i’s Hugo Gye reports the following:

[7 October 2021 19:00 · Sam Hancock]

That’s it from us on the blog for today, thanks for following along. Be sure to check out our front page for all the latest energy updates as they unfold.