Energy UK urges government action over rising winter energy bills

Energy suppliers in the United Kingdom are urging the government to take immediate action to assist households facing rising energy costs this winter. The trade body Energy UK warned that domestic gas prices are rising and forecasts suggest steep increases in January could lead to a deep and costly crisis.

Forecasters predict a 16% rise in domestic energy prices in the new year for approximately 20 million households on variable tariffs regulated by Ofgem. While a 4% increase occurred in October, consultancy Cornwall Insight suggests typical annual bills for electricity and gas could rise to £1,999.

Energy UK noted that while previous measures like VAT cuts on electricity provided some relief, these savings have been offset by high wholesale prices driven by international conflicts in the Middle East and shipping disruptions in the Strait of Hormuz.