The British energy regulator has issued an urgent plea for households to submit their meter readings before the new price cap takes effect, a move that signals a potentially sharp surge in household bills. The directive, coming from Ofgem, is a stark reminder that the cost of living crisis is far from over. Markets are already pricing in a 10% increase to the cap, a direct consequence of stubbornly high wholesale gas prices.
For the average household, this means an additional £150 a year. The cynical part of me cannot help but note that this is the price of a failed energy policy: a reliance on volatile spot markets and a lack of domestic storage. The government's fiscal response has been a game of whack-a-mole, throwing subsidies at the problem rather than addressing the structural inefficiencies.
Meanwhile, gilt yields remain elevated, reflecting the market's scepticism about the UK's sovereign creditworthiness. Capital flight? Perhaps not yet, but the pound is certainly feeling the pressure.
The bottom line is this: if you have not submitted your meter reading yet, do it now. Every kilowatt-hour of estimated billing is a gift to the energy companies. The market is efficient in its cruelty.
Read your meters, freeze your usage, and pray for a mild winter. This is Alastair Thorne, Financial Editor, signing off with a warning: the only certainty in this market is volatility.
