Energy price cap could jump to £4,266 in January, says Cornwall insight
The energy regulator Ofgem has changed how it calculates gas and electricity price rises to favour the bosses. And it means the deluge of energy price rises is predicted to be even worse than the most chilling forecast a month ago.
Household energy bills in Britain are now projected to peak at more than £4,420 a year on average next spring. That is nearly £90 a week just for your basic energy supply.
The energy consultancy Cornwall Insight, which is among the most accurate forecasters of energy bills, warned the price cap could rise from £1,971 a year on average at present to £3,582 in October—an increase of more than 80 percent. The cap would then jump to £4,266 in January before peaking at £4,427 in April next year,
It raised its forecasts for coming pain following an outrageous move by Ofgem. It has announced that the fat cat energy suppliers will be allowed to recover the full costs of buying energy for the coming winter at current wholesale prices. This will apply whatever the companies actually paid.
Suppliers are being allowed to charge more up front this winter so that they can quickly recoup the costs of buying energy in advance.
Ofgem also confirmed at the same time that the energy price cap will be updated quarterly, rather than every six months. So the price rises will come even quicker than before. Again the justification was to allow companies to make enough money to keep shareholders happy.
Ofgem insisted it had to make changes to the price cap to avoid another slew of energy company collapses because of the privatisation model. Since January 2021, more than 30 energy retailers have gone bust.
The costs of dealing with those failures is expected to exceed £4 billion—which ordinary people will be expected to pay through a levy on households’ energy bills.
All this comes as a survey by comparison site Uswitch suggested many people are already falling behind on energy payments. Total debt owed by households is three times higher than in September last year.
Almost a quarter of households owe £206 on average.
Ofgem will announce the October price rises on 26 August. That is the day 115,000 Royal Mail workers are set to strike.
It should be a united day of action across the whole working class with every group of workers who can strike out together and monster marches and rallies.
Labour is virtually silent or actively opposes on the urgent measures needed now. These have to include democratic public ownership of utilities such as energy and a freeze on price rises.
There would have to be above-inflation pay rises in the public sector, a big rise in benefits, abolition of anti-union laws to encourage workers to resist, a rent freeze and much more.
How to flush away trump
Donald Trump could be investigated (Picture: Flickr/Gage Skidmore)
Former US president Donald Trump is angry. He denounced a raid by FBI agents this week at his Mar-a-Lago estate in Florida as part of a witch‑hunt by “radical left Democrats”. He went on to compare it to the Watergate burglary—ordered by leaders of his own party—50 years ago.
The authorities were looking for official papers and investigating if he left the White House with classified records. There are plenty of reports of the Trump administration destroying material after the failure of the 6 January 2021 raid on the Capitol. Trump had to deny he flushed key documents down a toilet.
But such raids and official investigations won’t stop Trump’s plan to push for a second term and take the far right into office again. He hopes to repeat his trick of 2016 of posing as the friend of the forgotten and the abandoned.
As poverty sweeps through the US, this hugely wealthy racist wants to pose as the enemy of the corporate elite and the politicians. But stopping Trump and his far-right friends requires a fight that goes beyond the chosen method of legal battling in the courts.
It will require a battle against everything he stands for by striking workers and movements on the streets. And that also means taking on president Joe Biden as he backs big business and the military.
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