Gas plunge means cash for Sunak, but no relief yet for consumers
UK government subsidies for household energy bills are expected to plunge from current levels with a slump in wholesale prices but it will be months before consumers feel the benefit.
By July, energy tariffs are poised to fall below the government’s energy price guarantee for the first time since it was rolled out in October. Support may fall to £3 billion ($3.62 billion) in the fiscal year that begins in April, from £25 billion during the current period, according to estimates by Investec. The price cap is adjusted every three months and the next level, due to start in April, will reflect higher prices in November and December meaning some government support is still necessary.
Record high prices forced the government to augment support for consumers beyond the regulator’s energy price cap that has been in place since 2017 to limit the maximum charges on an average bill.
Bloomberg
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