UK Energy Bills to Surge 54% As Regulator Announces Hike

U.K. households are set to face an increase of over 50 percent in April after the country’s energy regulator raises its price cap on default tariffs.

British energy regulator, Ofgem, announced on Thursday that the maximum rate that energy suppliers can charge consumers will be increased by £693, a record increase of 54 percent.

“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can,” said Jonathan Brearley, Ofgem CEO.

The increase could translate to an additional £700 a year in the energy bills of about 22 million British households that are connected to the U.K.’s gas grid. Soaring prices of natural gas in Europe has hit Britain particularly hard due to its heavy reliance on gas as an energy source.

The regulator raised its cap to £1,277 in August, which it noted did not reflect the unprecedented surges in gas prices that took place in the following months.

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