British energy regulator Ofgem said its price cap for average household energy bills would rise by about 21% to 4,279 pounds ($5,170.74) a year from January to the end of March 2023.
Households, however, will not pay this amount as Ofgem's price cap has been superseded by a government-backed price guarantee set at 2,500 pounds a year for average consumption until the end of March 2023.
Ofgem's announcement means the government action will save typical households around 1,779 pounds a year, compared with what they would have had to pay under the regulator's cap.rises to an average 3,000 pounds a year from April 1 until the end of March 2024. European energy prices started to rise as the world emerged from COVID-19 lockdowns and then surged in February following Russia's invasion of Ukraine.
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