Household energy bills are set to rise, ending two years of falling prices and putting the big six suppliers on a collision course with Theresa May. The prime minister told the Conservative Party conference last week that the “dysfunctional” market kept too many customers on expensive tariffs. However, the Brexit-inspired crash in the value of sterling is set to lead to a sharp increase in costs because imported fuels are priced in dollars. The pound hit a 31-year low against the dollar last week after markets were spooked by May’s “hard-Brexit” rhetoric. Dominic Nash, an analyst at the investment bank Macquarie, expects “high single- digit” rises in energy bills. “Wholesale gas and power prices have spiked as the collapse in the pound has made it more expensive to buy coal and natural gas,” he said. “It is only a matter of time before this feeds through to household rates.”
Times 9th Oct 2016 read more »