Talk of a rise in energy prices is enough to bring anyone out in a cold sweat. Until 2020, bills were relatively stable, hovering around £700 a year. But then came lockdowns – and reopenings. As demand surpassed supply, energy prices rose. Russia’s invasion of Ukraine intensified supply pressures further. By April 2022, typical bills under the Ofgem energy price cap had risen to almost £2,000.
In the autumn of 2022, energy prices reached record highs – threatening another 80 per cent hike in the price cap. This would have taken typical bills to almost £4,000, had the government not intervened. The now defunct Energy Price Guarantee set the maximum price at (a slightly more affordable) £2,500.