UK Energy Increases

Millions across the UK will see energy costs increase starting tomorrow, as the cap on domestic energy bills for typical households will be guaranteed at an average of 2,500 pounds ($2,870) annually for the next two years. The guarantee was announced by Prime Minister Liz Truss to replace the original price cap, set by industry regulator Ofgem, of 3,549 pounds ($4,189). Households will also receive a 400-pound reduction in their energy bills, spread over six months, as part of the 150B-pound ($162B) public support package. In comparison, the average UK energy bill last year was 1,971 pounds ($2,182). About 85% of UK households use gas boilers for heat, with the war in Ukraine helping drive gas prices prices up by 400% over the past year. The news comes as many citizens are already struggling to afford essentials due to rising inflation, with year-over-year inflation running at a 40-year high of 9.9%. The Bank of England announced Wednesday it would purchase long-term UK bonds over the next two weeks to ease bond market concerns.