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Britain’s electricity bills will remain high until 2023, sellers warn

Britain’s household electricity bills are expected to remain high until 2023, with electricity and gas suppliers warned, while pleading with the cabinet to help consumers and companies struggling financially in the face of rising prices.

Customers have been experiencing unprecedented tree prices for another 18 months unless the government intervenes to reduce long-term inflation, many retailers told the Financial Times.

Researchers have already warned that the price tag in Britain could rise by more than £ 700 up £ 2,000 a year per household will be replaced by Ofgem’s editors in April.

But retailers fear that the cover for the coming winter could exceed £ 2,000 a year and several hundred pounds unless the government agrees to cut lower prices.

Consumer electricity prices for the next winter will be set by Ofgem supervisor in August and will be operational for six months from early October. EDF Energy, Britain’s fourth-largest retailer, has warned that, by October, the average price “could” exceed £ 2,000 a year.

The price tag was introduced in 2019 to protect the bills of more than 15m families who chose not to opt for fixed price agreements which, until the market price crisis, becomes too low. However, commodity prices have skyrocketed in recent months, providing an accurate indication of the current cost of supplying electricity and gas to households.

Data from Uswitch, a pricing website, show that a number of retailers are offering one-year fixed pricing at a cost of £ 2,500 a year based on average usage. A review by Investec Investment Bank shows that very few are offering fixed prices of around $ 3,000 a year.

“We are seeing an increase by 2023,” said six more power officials.

Martin Young, a researcher at Investec, said: “Directly, we can see an increase in household electricity bills by October 2022”.

“This has now shifted from the problem of energy suppliers to the complexity of life,” he added.

Business Secretary Kwasi Kwarteng has promised to continue discussions with companies and Ofgem to provide customer support to the sector after a special meeting on Monday.

Electricity companies have been pushing for a variety of solutions, including government-sponsored loans that will enable them to distribute long-term value propositions to consumers but without compromising their potential; a 5 per cent reduction in the value added tax; increased support for at-risk families; and tax cuts on bills that provide government policies, such as the growth of energy efficiency.

Dale Vince, founder of Ecotricity, a green energy retailer, said Tuesday was “the time to wind tax on the benefits of the North Sea oil and gas production to cover the cost of electricity problems ”. Some North Sea gas producers in particular have promised investors beautiful returnee as they benefit from very high prices.

UK oil prices last week hit a new record above 450p per therm. It has dropped to 275p / therm but remains about five times the amount it sold in early 2021.

Without taking action, the electricity companies have warned that there will be another collapse. The biggest failure so far, Bulb Energy with a customer base of 1.6m, is supported by The first debt of a taxpayer of £ 1.7bn.

Adam Scorer, CEO of charity National Energy Action, “It’s a train wreck that we’ve been seeing for months,” he said. It was time for the government to “intervene and help those who will be most affected by the unstoppable storm”, he added.

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