The UK’s energy regulator increased the energy price cap affecting 15 million households across the country.
Britain's energy regulator Ofgem announced the energy price cap will increase for 15 million customers who do not have fixed-price contracts due to the record cost of wholesale gas.
The British independent energy regulator said the reason why the new energy price cap’s rising is a more than 50 percent increase in energy cost over the last six months.
Those on default tariffs paying by direct debit will face a rise of $188 from $1,540 to $1,729 while prepayment customers will pay $207 more from $1,565 to $1,772.
Some charities have warned the new rising energy price cap could force hundreds of thousands of Britons into “fuel poverty” which means people are unable to keep their houses sufficiently heated.
According to the Centre for Sustainable Energy(CSE), “fuel poverty could become endemic in the UK” unless drastic action is taken.
The ongoing energy crisis could force one in five British households into fuel poverty, according to the charity’s latest calculations.
“Keeping healthily warm is a basic human right and it’s wrong that so many people are struggling with cold homes when living in a developed country like the UK,” Ian Preston, Head of Household Energy at CSE, said.
By underlining cold homes causing misery, ill-health and social exclusion, Preston said: “We need urgent action from the government to maintain support for people in vulnerable circumstances.”
The End Fuel Poverty Coalition launched a petition to call on the government to take immediate action to avoid the upcoming fuel poverty crisis this winter.
CSE also has energy saving advice and top tips for people worried their energy supplier is about to go bust or thinking of switching as prices soar.
On the other hand, Ofgem recommends customers shopping around or asking their supplier to put them on a better deal in order to avoid the price increase.
Increasing energy prices affect the EU
Households across the European Union will face much higher energy bills due to surging wholesale power and gas prices, and consumer groups have warned the most vulnerable could experience fuel poverty.
Spain has urged the European Commission to devise guidance to help member states react consistently to power price spikes without testing the rules of the bloc.
Italy's Prime Minister Mario Draghi also said Europe needed to act to diversify its energy supplies and strengthen the bargaining power of purchasing countries to help curb power and gas price rises.
The European Union executive will discuss on Tuesday measures to offset spikes in energy prices for consumers across the 27-nation bloc.