ecord excessive pure fuel costs may rise even additional if the UK experiences a chronic or significantly chilly winter, in response to the proprietor of British Gas
There has been a greater than 50% improve in power prices over the past six months, with fuel costs reaching new heights amid provide points and elevated inflation, Ofgem has stated.
Cassim Mangerah, who runs power buying and selling at British Fuel proprietor Centrica stated restrictions on the quantity of pure fuel out there globally may have important implications for UK customers throughout a sustained winter.
If costs are actually excessive then some gas-dependent companies within the UK and Europe could merely determine to not produce
“We haven’t seen a worth state of affairs like this earlier than. If you happen to can’t entice provide the one various is to chop demand to steadiness the market,” Mr Mangerah informed the Monetary Instances.
“If we do see a provide crunch this winter the opposite solution to steadiness the market is thru financial exercise.
“If costs are actually excessive then some gas-dependent companies within the UK and Europe could merely determine to not produce,” he added.
It comes after two main power suppliers final month confirmed autumn worth hikes for hundreds of thousands of households according to Ofgem’s worth cap improve.
The value of each E.On and Scottish Energy’s commonplace tariffs will soar by round £139 a 12 months, the utmost allowed by regulator Ofgem from October 1.
Different corporations are anticipated to observe.
Earlier in August, Ofgem confirmed it was permitting suppliers to extend payments for round 15 million households by a minimum of £139 to a document excessive as a consequence of an increase in wholesale costs.
The regulator stated that power prospects on default tariffs paying by direct debit will see the sharpest soar in costs because the cap was launched, taking common payments to £1,277.
Ofgem critiques the worth cap as soon as each six months, and modifications it primarily based on the associated fee that suppliers should pay for his or her power, price of insurance policies and working prices, amongst different issues.