On Friday, British energy regulator Ofgem announced a 10% increase in the price cap on household energy bills, effective from October 1.

This adjustment raises the annual cap to £1,717 ($2,250.64), with the surge attributed to severe weather conditions and geopolitical conflicts, including the ongoing war in Ukraine.

Ofgem CEO Jonathan Brearley emphasized the impact of the global gas market's volatility on this price hike. "The price rise we are announcing today is largely driven by our reliance on a global gas market that is highly susceptible to unexpected international events and the actions of hostile states," Brearley stated.

Brearley acknowledged the challenges this increase would pose for many households, recognizing the financial strain it would create.

The 10% rise for a typical dual-fuel household exceeded analysts' predictions slightly. Earlier in the week, energy consultancy Cornwall Insight had forecasted a 9% increase, citing the recent rebound in wholesale gas and electricity prices over the past few months.

"Although prices have somewhat stabilized compared to the past two years, the market has not fully recovered from the energy crisis and the effects of Russia's invasion of Ukraine," the consultancy noted. Photo byMartin Edwards, Wikimedia commons.