Great Britain faces 80% price hike in energy bills amid crisis

The energy increases are expected to push inflation above 10.1 per cent recorded in July and trigger a recession later this year, the Bank of England has predicted.

Jennifer Jones keeps feeding money into her energy metre, but it never seems to be enough. And when she can’t pay, she feels the impact immediately.

The power in her London home has gone off suddenly three times recently, once when her partner was cooking an egg.

Like millions of people, Jones, 54, is struggling to cope as energy and food prices skyrocket during Britain’s worst cost-of-living crisis in a generation. The former school supervisor has health problems and relies on government benefits to get by, but her welfare payments are nowhere near enough to cover her sharply rising bills.

“I’ve always struggled, but not as much,” she said. “Everything is going up. I can’t even pay my rent, my council tax, I can’t afford to do anything. … I keep asking myself, what am I supposed to do?”

And things are getting worse. U.K. residents will see an 80 per cent increase in their annual household energy bills, the country’s energy regulator announced Friday, following a record 54 per cent spike in April. That will bring costs for the average customer from 1,971 pounds (US$2,332) a year to 3,549 pounds.

The latest price cap — the maximum amount that gas suppliers can charge customers per unit of energy — will take effect Oct. 1, just as the cold months set in. And bills are expected to rise again in January to 4,000 pounds.

To blame for the increase is the soaring price of wholesale natural gas triggered by Russia’s war in Ukraine, which is driving up consumer prices and roiling economies across Europe that rely on the fuel for heating homes and generating electricity.

That includes the United Kingdom, which has the highest inflation rate among the Group of Seven wealthiest democracies and seen disruptive strikes for months as workers push for pay to keep pace with the increasingly expensive cost of living.