The price of GAS skyrocketed in September, and the aftermath has affected the entire energy market.
Household is generate thousands more than they had to do before to pay their energy bills.
Even energy companies are collapsing due to increasing costs and pressures.
Much as 26 has fallen In recent months, the market has thinned as we approach Christmas and the deeper we go into the winter months.
This is all because gasoline prices have increased by more than 250% since the beginning of the year.
From August to the end of September, wholesale gas prices rise An amazing 70%.
We explain why this is so and how it continues to affect you as a result.
Why is the price of gas increasing?
Post pandemic needs and lack of supply was blamed for the increase in costs.
High demand from Asia, low supply from Russia, fires affecting French electricity imports and lack of wind for wind turbines are all to blame.
The UK also imports more than two-thirds of its gas.
The average wholesale gas price at the end of summer was 83.26p a can, up from 48.29p six months earlier in February.
That is passed on to households through Energy bills increase because wholesale gas makes up about half of your energy bill.
The remainder is made up of operating, administrative and policy costs and VAT, but these costs will always be added to the top regardless of the wholesale costs.
We also explained four charts that shows why the price of gas has also increased in the past.
Will it get worse?
Consumer energy bills may also increase further as the government does not rule it out increase the price ceiling beyond the October increase we saw most recently.
The cap will be reviewed again in April, so households could see prices fall in just six months’ time.
But the cap could be reviewed even more frequently, meaning household bills will rise more often with the new limit being raised.
This year, the limit has increased twice in the same year for the first time, and is at its highest level ever.
Nothing to say this won’t go any further.
Big energy companies like EON have called on the government to drop the green tax as a way to ease pressure on the industry.
But the result of this will mean more energy companies collapse if nothing is done to relieve the pressure, or consumers will continue to find ways to cover the costs passed on to them by the limit. increase.
Critics have recently warned that vulnerable households next month will face must choose between heating and eating is the aggregate result of the ongoing crisis.
Who is affected by rising gas prices?
Rising gasoline prices also have an impact on other energy sources.
Natural gas is used to produce around a third of the UK’s electricity that powers homes and more across the country.
Now home appliance suppliers are counting on rising costs as government energy price caps limit what they can pass on to customers.
However, that limit, has increased £139 a year, from £1,138 to £1,277 in early October.
But this increase not only makes household bills a financial burden for everyday people, it also means that soaring gas costs have sent several energy companies out of business in the process. this.
Some energy companies supplies to 700,000 households that have gone bankrupt, with chains beginning with names like People’s Energy and Utility Points, and Green and Avro also stopped trading at the beginning of the crisis.
More recently The light bulb is broken affects 1.7 million energy customers.
But the company is currently going through a special management process – means it will be allowed to function as it should and the client doesn’t need to do anything.
There are warnings other suppliers could also go bankrupt in the coming weeks.
Some experts have predicted that a total of 60 suppliers could go bankrupt by the end of this year, which means only 10 suppliers left in the market.
But other industries are also affected as a result, the food industry is one of them.
Rising gas prices force carbon dioxide (CO2) treatment plants to close supermarket meat and frozen food Supplies are also at risk.
Is there a way to cut my hiking bills at home?
While you can’t avoid a price ceiling hike that’s about to take effect on October 1, you can take the opportunity to cut your own energy consumption or even take a look at our best rates. what remains.
There are also ways struggling Britons can reduce their own costs, with winter plan designed to reduce money from your energy bills.
These include things like warm-home discounts and winter fuel payments as well as cold weather payment plan.
But if you happen to be affected by the collapse of certain energy companies, we also have advice on what to do next.
But you Don’t be in a hurry to switch suppliers, which is usually the first port of call when wanting to save some cents on your tariffs.
Lisa Barber, which one? Home products and services editor said: “Ofgem will designate new energy suppliers to take over and protect any credit customers have so they can rest assured that they will not cut or lose money.
“We recommend reading the meter as early as possible to ensure the transition is as smooth as possible.”
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https://www.thesun.co.uk/money/16218142/gas-prices-increased-gone-up-why/ Why is the price of gas increasing?