Britain’s domestic energy price cap is forecast to rise by about 18% in July, analysts at Cornwall Insight said on Tuesday, lowering their forecast slightly as wholesale energy markets steadied
International News via Reuters:
Britain’s domestic energy price cap is forecast to rise by about 18% in July, analysts at Cornwall Insight said on Tuesday, lowering their forecast slightly as wholesale energy markets steadied.* Finance minister Rachel Reeves has said she would consideraction to shield households from surging energy costs but isconstrained by the country’s high borrowing costs. * Disruptions to shipping in the Middle East and a halt toliquefied natural gas exports from Qatar, one of the world’slargest gas exporters, have led to a surge in international gasprices. * Cornwall Insight forecasts Ofgem’s price cap will rise inJuly to 1,929 pounds ($2,549.17) a year for typical use, up 288pounds from 1,641 pounds in April. * Wholesale energy prices are the largest single factorcontributing to British energy regulator Ofgem’s domestic pricecap, which is set on a quarterly basis using a formula that alsoreflects suppliers’ network costs and environmental and sociallevies. * The analysts had previously forecast a 20% rise in July. * Ofgem is expected to publish the next price cap level byMay 27.
($1 = 0.7567 pounds)
Reporting By Susanna Twidale; Editing by Arun Koyyur
