Average UK energy bills could hit £2,600 a year, consumers warned
UK consumers have been warned to brace themselves for a substantial increase in the cost of living, including the prospect of £2,600-a-year energy bills after the Russian invasion of Ukraine.
The prices of wholesale gas and oil soared on the back of the news on Thursday, leading to predictions of further rises in domestic bills.
The AA and RAC warned that petrol and diesel prices would start rising within days after crude oil prices reached $103 (£77) a barrel.
Analysts are warning that household gas and electricity bills could rise by another £600 a year to £2,6000 after the Russian invasion pushed wholesale gas prices up 28% on Thursday morning.
Although UK households are not heavily reliant on Russian gas, concerns that supplies from the country will be disrupted have pushed up prices on the wholesale market.
After Germany halted the approval of the Nord Stream 2 pipeline this week, the Russian politician Dmitry Medvedevwarned natural gas prices could double in Europe.
Oil prices have risen to a seven-year high over concerns about supplies from Russia.
The market turmoil is set to cause further hardship for those already struggling to heat and light their homes. On 1 April the average dual fuel bill is already set to rise to a record £1,971, and more pain could be on the way when the regulator Ofgem reviews the maximum rate that suppliers can charge in the autumn.
Roger Bird, the head of energy trading and risk at the consultancy Advantage Utilities, warned that volatility in the energy market in the coming months could easily see the cap go up by £600 or more.
Should Russia cut Europe off from its gas supplies the continent would be at the mercy of a “cut-throat” industry that often sees gas supplies circle oceans and be
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