Sat. Jan 29th, 2022

The electricity market price passed the ₤ 100 a megawatt-hour mark last month for the very first time since the market was formed in 1990, according to analysis by Imperial College London.The typical market rate reached ₤ 107.50/ MWh, up 14% on July, and well above the previous record of ₤ 96/MWh tape-recorded in the run-up to the 2008 global financial crisis.Dr Iain Staffell, a senior lecturer at Imperial, and the author of the report, stated the electrical energy market rise would suggest another boost to house energy expenses if these prices were sustained.Last month the market regulator Ofgem revealed it would raise the optimum cap on default energy deals for the coming winter season by more than 12%, after a sharp rise in the market price for gas and electricity.As an outcome, 11m homes with direct debit costs will be asked to pay an average of ₤ 1,138 for a dual-fuel energy costs, an increase of ₤ 139. The sharp increase is expected to press about 500,000 families into fuel poverty this winter, according to campaigners, and has actually reignited calls for a social energy tariff priced listed below the cap.Ofgem will review the energy markets from August to January to identify where the cost cap should be set from next April, which could lead to another sharp boost in expenses if record electricity and gas market rates continue.”This will filter through into home costs, and there is not a lot we can do in the short-term as Britain is especially exposed to fossil fuel cost swings,” Staffell said.The report, which was commissioned by the energy company Drax, recommended a boom in global gas rates was accountable for driving up UK wholesale electrical power prices to record levels.

Energy industryAnalysis by Imperial College London adds to issues about more homes being pressed into fuel povertyHousehold energy expenses are to increase after costs on the UKs wholesale electricity market skyrocketed to a record high last month, advancing concerns about more families being pressed into fuel poverty this winter. The electrical energy market price passed the ₤ 100 a megawatt-hour mark last month for the very first time since the market was formed in 1990, according to analysis by Imperial College London.The average market price reached ₤ 107.50/ MWh, up 14% on July, and well above the previous record of ₤ 96/MWh recorded in the run-up to the 2008 international financial crisis.Dr Iain Staffell, a senior lecturer at Imperial, and the author of the report, stated the electrical power market rise would recommend another increase to house energy expenses if these costs were sustained.Last month the market regulator Ofgem revealed it would lift the optimum cap on default energy deals for the coming winter season by more than 12%, after a sharp increase in the market rate for gas and electricity.As a result, 11m families with direct debit expenses will be asked to pay an average of ₤ 1,138 for a dual-fuel energy expense, an increase of ₤ 139. The sharp boost is expected to push about 500,000 homes into fuel hardship this winter season, according to campaigners, and has actually reignited calls for a social energy tariff priced below the cap.Ofgem will examine the energy markets from August to January to identify where the rate cap should be set from next April, which might lead to another sharp boost in bills if record electrical energy and gas market rates continue.”This will filter through into family costs, and there is not a lot we can do in the short-term as Britain is especially exposed to fossil fuel rate swings,” Staffell said.The report, which was commissioned by the energy company Drax, suggested a boom in global gas costs was accountable for driving up UK wholesale electricity rates to record levels.”Ultimately, Britain needs to minimize its dependence on fossil fuels to be spared the results of cost swings,” the report stated.

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