By Geoffrey Smith
Investing.com -- U.K. households face a rise of around 80% in their electricity and gas bills from October after the national energy market regulator Ofgem jacked its price cap sharply higher again.
Ofgem said its price cap for the typical annual dual-fuel tariff will rise to 3,549 pounds from October 1st, from 1,971 pounds currently.
The increase in regulated prices is set to drive another big rise in inflation, as well as greatly reduce disposable income across the British economy. It comes on top of a raft of tax increases announced earlier this year by the U.K. government to close the yawning budget deficit that widened significantly during the pandemic.
The new cap will only stay in place for three months, rather than the usual six, due to the higher volatility in global energy markets since Russia's invasion of Ukraine in February. As such, another substantial rise is possible in January.