UK Faces £16 Billion Bill for Three Months of Energy Subsidy
- Typical household bill would hit £4,279 without subsidies
- Households still face record-high energy bills this winter
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Energy regulator Ofgem will raise its price cap for the average UK home by 21% to £4,279 ($5,173) from January, underscoring the growing gap the government has to plug to maintain its price freeze.
The UK has been subsidizing Ofgem’s price cap since October in an attempt to shield households from the worst energy crisis in decades. That means a total of around £16 billion in the first three months of 2023 to keep tariffs at £2,500, according to analysis from the Resolution Foundation think tank.