UK households to pay £500 a month as Russia squeezes gas supp

TEHRAN, Jul. 28 (MNA) – As Russia restricts gas supplies to Europe, UK energy bills are expect to almost double to nearly £4,000 ($5,000) this winter and remain above £3,000 a year until 2024m media have said.

Annual energy bills are already £1,971 for a typical household but are forecast to jump to £3,420 when the price cap on most tariffs is updated in October and again to £3,850 in January, according to the National.

In its winter outlook, the National Grid said buffers remained good against blackouts but the Russian threats of a shutdown of supplies would push up prices. "There are risks and uncertainties this winter as a direct result of possible shortfalls in Europe's gas supply," the report said. "Britain is not reliant on Russian gas to the extent that the rest of Europe is, it is clear that the cessation of flows of gas into Europe could have knock on impacts, including very high prices."

The prediction comes as Europe's natural gas prices on Wednesday were approaching their highest since the war in Ukraine began on February 24 after Russia slashed supplies to its western neighbours.

Benchmark gas contracts were trading at €216 ($219) a megawatt hour, up 9 per cent, after deliveries through the trans-Baltic Nord Stream pipeline were cut to 20 per cent of capacity.

Many British households will be pushed into fuel poverty, where energy bills consume more than 10 per cent of income, unless the government significantly increases the help on offer, says energy consultancy BFY, adding an average customer will face “a bill of £500 in January alone” as UK households typically use most energy in winter.

MNA/PR

News Code 189597

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