MOSCOW (Pakistan Point News / Sputnik - 26th August, 2022) The United Kingdom will face a "national disaster" due to the continuous increase in energy price cap if the government fails to act swiftly, London Mayor Sadiq Khan said on Friday.
Earlier in the day, the UK energy regulator, Ofgem, announced an 80% increase in the energy price cap to 3,549 Pounds ($4,194) per year starting October 1, which marks a triple increase in less than a year.
"Today's price cap announcement confirms what many of us have long feared. Despite repeated warnings, the Government has consistently failed to intervene and Ministers must act now to prevent this cost of living crisis becoming a national disaster," Khan tweeted.
The price cap was introduced in the UK in 2019 to protect customers and stop retail companies from charging unfair profits over the cost of the energy they need. Since its last revision in April, the cap has stood at 1,971 pounds. In October 2021, the price cap was 1,277 pounds. Earlier in August, Ofgem announced that the cap will now be reviewed quarterly rather than every six months.
Since 2021, energy and electricity prices in Europe have been rising rapidly following a global trend. Inflation and the growth in food and energy prices accelerated across Europe against the backdrop of sanctions imposed on Russia over Ukraine. Inflation in the UK reached historic maximums since March 1982, and the rising cost of living has hit millions of households.
