“It is clear that the new Prime Minister will need to act further to address the impact of the price rises coming in October and next year,” Brearley said. Rising wholesale energy prices are hitting countries around the world. While European governments have scrambled to save gas, increase storage and cut bills, Britain’s government has been paralyzed by the race to replace Boris Johnson as prime minister on September 5. The two candidates clashed over how to respond. Their proposals, which include suspending environmental levies or cutting sales tax, have been dismissed by analysts as too little to avoid an unprecedented blow to household budgets. Finance Minister Nadhim Zahawi said on Friday he was working on a plan to be ready for the next government, although he acknowledged the new price cap would cause stress and anxiety for millions. Ofgem said it was not giving a forecast for January when a new cap would come into force because the market remained very volatile, but said the winter gas market meant prices could get “significantly worse” by 2023 . Energy bills have soared this year after wholesale gas and electricity prices, already rising after the pandemic, rose following Russia’s invasion of Ukraine and Moscow’s move to curb gas exports to Europe. The new average electricity and gas bill for 24 million households means energy bills will have almost tripled since October last year, when they averaged £1,277, a major factor in inflation rising to a 40-year high.
