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“With energy bills there’s not much you can do about it.” The promise of the UK’s thoroughly privatized energy system was that it would allow customers to shop around for the best deal rather than rely on monopoly state providers. If the cost of fuel goes up you drive less,” he told me. “When the cost of food goes up you start buying cheaper food. When he went to get a new contract, estimates had gone up by around $1,200, to roughly $4,232 a year. Lewis Ford, an IT consultant who lives in Hull with his wife and young children, was on a fixed-price yearly contract with his energy supplier for both gas and electricity that ended in January. More than half of UK households could face fuel poverty, and a new campaign is proposing a novel solution to the problem: Don’t pay. When the current cap expires in October, Ofgem is expected to raise it by another 70 percent, resulting in a $4,331 yearly bill for the typical home. The price cap system was first introduced in 2019 as a response to rising concerns about fuel poverty, when households spend more than 10 percent of their income on energy bills. And while the UK may not face the kinds of acute shortages that stand to rock countries like Germany, the idiosyncrasies of its energy system already threaten a national crisis around the cost of living.Īs energy prices rose this past winter, the UK’s Office of Gas and Electricity Markets-tasked with overseeing the country’s privatized grid-raised its price cap on energy bills, or the maximum amount energy suppliers can charge each year, by 54 percent to $2,383. In Europe, heating and electricity costs will take center stage this winter, as the continent grapples with a prospective cutoff in the Russian gas supplies that have been a staple of its energy diet.
#PAY NATIONAL GRID BILL DRIVERS#
In the U.S., the main concern has been what drivers pay at the pump. Amid Russia’s war in Ukraine and surging energy demand as Covid-19 restrictions have ebbed, there’s hardly a country on earth that hasn’t been hit by rising fuel prices.