The UK’s energy prices have risen over the past year, despite the government’s attempts to help.
As of October 27th, 2022, the UK’s energy prices have risen by 2.7%. This is a huge increase from the previous year, when prices rose by just 0.4%. The reason for this increase is because of an increase in wholesale gas and electricity costs. These are costs that are passed on to consumers and make up about half of their bills.
While wholesale costs are rising, it is still unclear why they are rising so much more than expected. One reason could be that there is less gas being produced in the UK. According to data from Oil & Gas UK, only 10% of natural gas was produced in Britain in 2017/18 compared to 28% in 2010/11.
Another reason could be that renewable energy sources such as wind and solar power are getting more popular with customers. These renewable sources don’t produce enough energy to meet customer demand at all times, so traditional power plants need to be used more often. This means that traditional power plants can charge higher rates for their services.
