Energy price cap in UK to increase by half from April
February 3, 2022, 3:45 pm

Energy price cap in UK to increase by half from April

UK-London-Parliament/Pixabay

The Xinhua reported, Britain's energy regulator announced Thursday that driven by a record rise in global gas prices, the energy price cap in Britain will increase by half from this April.

Tthe country's Office of Gas and Electricity Markets (Ofgem) said in a press release, the price cap will jump from the current 1277 pounds (1,736 U.S. dollars) to reach 1,971 pounds per year for about 22 million customers.

It said that the wholesale gas prices quadrupled last year.

Jonathan Brearley, chief executive of Ofgem, said: "We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can."

Brearley added: "The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem's role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas."

UK government to set up 'level up' plan as an attempt to move on from lockdown scandal

Ofgem reviews the cap twice a year, in April and October respectively. In October 2021, the regulator increased the cap for the period from October 2021 to March 2022 by 12 percent, to 1,277 pounds, compared to the previous period.

The cap "stops energy companies from making excessive profits, ensuring customers pay no more than a fair price for their energy," the press release said. "The price cap allows energy companies to pass on all reasonable costs to customers, including increases in the cost of buying gas."

Germany's exports to UK continue to decline in 2021

According to an official report, introduced in 2019 and originally intended to end in 2020, the cap system has been extended and may continue until 2023 if needed.

There are mixed views on the cap, the report added. Some have said the cap could interfere with competition while others said the cap comes as a potential solution to runaway energy costs.

Source: xinhua

Joe Biden says US raid in Syria targeted leader of Daesh Sergio Mattarella has been re-elected President of Italy

Upon arriving to participate in the summit of the European Political Community, which includes around forty heads of state in Budapest, he said, "I look forward to sitting with the elected U.S. president and seeing how we will collectively ensure we meet challenges, including the threats from Russia and North Korea." He also noted that the strengthening of ties between Russia and North Korea poses a threat to the United States as well, according to reports from Agence France-Presse.

Before Trump's victory, Rutte expressed confidence that a united Washington would remain part of the defensive alliance, even if Trump became the 47th president of the United States. In an interview with German public broadcaster ZDF last Monday night, he stated that both Republicans and Democrats understand that NATO serves not only the security of Europe but also that of America. He added that both candidates are aware that the security of the United States is closely tied to NATO.

On Wednesday, NATO congratulated Trump on his victory but did not address the Ukrainian issue.

It is noteworthy that the relationship between the elected U.S. president and the defense alliance was not the best during his first term in the White House. Trump criticized NATO member states multiple times and even hinted at withdrawing from the alliance unless they increased their financial contributions.

Additionally, the issue of the Russian-Ukrainian war is one of the matters that complicate relations between the two sides, especially since Trump has repeatedly stated that he can end this ongoing conflict, which began in 2022, quickly. He implied that he had a peace plan between Kyiv and Moscow, while his vice president, JD Vance, revealed aspects of that plan, which stipulated Ukraine's commitment not to join NATO, thereby sending reassuring signals to the Russians.

Furthermore, many NATO member states in Europe fear that Trump might halt military aid to Ukraine after he previously criticized the U.S. for pouring funds into supporting Ukrainian President Volodymyr Zelensky.