The 5 Key Reasons Behind the UK’s Gas Price Increases

Posted on the 21 September 2021 by Ecoexperts @TheEcoExperts

The wholesale price of gas has increased by 250% this year

Energy bills for million of households are set to rise by 12%

Supplies of food and drink may be severely affected

Gas prices are mind-bogglingly high, thanks to a perfect storm of cascading problems.

The wholesale price of gas has increased by 250% since January, including a 70% rise from August to September, according to trade association Oil & Gas UK.

Considering around 85% of UK households have gas boilers, this has produced a massive ripple effect which has led to spiralling costs and reduces in supply.

Companies have shut down, energy bills are set to go through the roof, and our food and drink supply is under threat.

Here's how we reached the brink of disaster, and how it's set to affect you.

Energy bills will rocket up

Millions of homes will face soaring energy bills this winter, as Ofgem raises the energy price cap by 12%, from £1,138 per year to £1,277 per year.

The higher price cap will directly affect the 15 million homes currently on the default dual-energy tariff - which equates to more than half of all UK households.

And as an increasing number of smaller companies fold under the pressure, it makes it more and more likely that we'll see less competitive pricing in the future.