Since the summer of 2021, 25 energy suppliers have gone out of business and one entered special administration, mainly because of substantial rises in wholesale energy prices. The cap places a limit on prices for customers on default tariffs to 'keep prices fair' and protect them from market volatility. Some households were sheltered from these rises over the winter because of the Ofgem price cap. Gas is also used to fuel around a third of the UK’s electricity generation, so rising gas prices have in turn led to rising electricity prices. The UK imports around 50% of its gas from the international market, and most homes in England and Wales are heated by mains gas supply.
Download this chart The wholesale price of gas was around four times higher than at the start of 2021 ImageĪs the global economy restarts after pandemic-related lockdowns, limited stocks of natural gas and supply constraints have driven prices higher.
