.jpg)
21 minutes ago
1
Article content
(Bloomberg) — UK energy bills will rise slightly in January, with the cost of government policy continuing to keep bills high even as wholesale energy prices fall.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
While wholesale prices have fallen 4% over the last three months, rising costs to carry out government plans, including funding for the Sizewell-C nuclear power plant, drove the change, Ofgem said Friday in a statement.
Article content
Article content
Higher energy bills are not the news UK Chancellor Rachel Reeves wants as her government agonizes over tax cuts before her major budget announcement next week. Reeves has said she will act to ease the financial squeeze on Britons and is considering a range of measures to reduce electricity and gas costs. These could include adjustments to tax and climate levies.
Article content
Article content
The energy price cap — the maximum that suppliers can charge and reviewed every three months — will rise 0.2% to £1,758 from Jan. 1, Ofgem said. That will keep pressure on the government to deliver on its promise to lower bills, which remain at historically high levels.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The average annual bill could increase again in April as rising grid costs threaten to push prices higher, according to recent analysis from industry consultant Cornwall Insight Ltd.
Article content
Read: UK Energy Prices Are Down, But Consumers Still Face Higher Bills
Article content
The Ofgem price cap, which represents the annual bill for a typical household, primarily reflects wholesale power and gas costs. While those have fallen, other costs — including government levies and network charges — are moving in the opposite direction.
Article content
The government pledged last year to bring down energy bills by 2030 by expanding renewable generation and reducing reliance on gas — a strategy spurred by soaring global prices following Russia’s invasion of Ukraine. However, the transition away from fossil fuels comes with significant costs, including major upgrades to the electricity grid, which are emerging as a new driver of household energy prices.
Article content
English (US)