UK energy bills will rise more than expected this winter, with many households struggling to afford them, after Russia further cut gas supplies to Europe, sending gas prices and energy for the winter and for next year increasing, the United Kingdom. consultancy BFY Group said on Wednesday.
Earlier this week, Russia said gas supplies through Nord Stream, the main link between Russia and Germany, would be reduced to just 20% of the pipeline’s capacity, days after Gazprom restarted the pipeline in 40% of its capacity after regular maintenance. The Russian explanation for the even lower gas flows in Europe is that another turbine was sent to a compressor station for repairs, while the one Canada returned from repairs has not yet been installed.
The rebound in wholesale prices, caused by the latest Russian cut in gas deliveries, has boosted BFY Group’s price forecast for next winter, said Gemma Berwick, senior consultant at BFY Group.
The UK has a so-called energy price cap in place, which protects households from excessively high bills by limiting the price increases that can be passed on to them by suppliers. In April this year, the energy price cap was increased by more than 50%, doubling the number of fuel-stressed households in the UK overnight. But the UK hasn’t seen the worst of its cost of living crisis, with energy bills set to rise by a further 42% in October, when the energy regulator is due to raise the energy price cap again .
BFY Group’s latest forecast after Russia further cuts supply to Europe now stands at $4,120 (£3,420) for the fourth quarter of 2022 and $4,640 (£3,850) for the first quarter of 2023, according to the average consumption
“With typical usage patterns, this means bills for January alone will now be over £500 [$602]. More support will be needed for most households to avoid being classified as fuel poor,” said Berwick of the BFY Group.
“Large sections of the British public will not be able to pay their bills this winter. Average families with two working parents will be in energy poverty,” Berwick said, as reported by The Telegraph.
By Tsvetana Paraskova for Oilprice.com
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