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Electricity: English families are caught up in rising prices

January 26, 2022, 12:48 pmUpdated January 26, 2022 at 5:58 p.m.

In the United Kingdom, rising energy tariffs are as worrying as they are in France … the state no longer has control over the British case, the main operator privatized since the time of Margaret Thatcher. The market is dominated by six major companies, including EDF, with many companies entering the market as it deregulated.

Rising gas prices This has caused casualties for alternative providers . Of the fifty still active this summer, 26 have been bankrupt since August, failing to raise prices beyond the price range set by regulations. Often consumers are forced to return to the “big river” with rising prices as a result.


In April, a new blow awaits British families. It is time to increase the tariff limit for this year. According to the UK Federation for Energy, the increase could be as high as 50%, putting not only ordinary families but also the middle class at a disadvantage.

Conclusion According to a study by the Foundation’s Think Tank, almost 27% of families can Fall into “fuel poverty” , Compared to 9% today. That means 4 million households will spend more than 10% of their budget on energy.

VAT abolition

The debate over the cost of living has been pushed into the political landscape since this summer, although there has been some recent stalemate over the debate over the holidays on Downing Street. The Labor opposition has been pushing for months to repeal the 5% VAT on energy. An option initially rejected by Prime Minister Boris Johnson, but recently re-emerged – High inflation began to be felt among families . Sunday “Mail on Sunday” pointed out that this possibility is “definitely on the table”.

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Since the UK exit from the EU gives London more flexibility than its VAT rates, it will have index value for those behind Brexit. But it can be expensive, while at the same time benefiting wealthy families and the very simple.

State loans under review

Other solutions are being explored, including the abolition of the entire series of green taxes aimed at financing renewable energy. This may seem irrelevant at a time when the United Kingdom wants to be at the forefront of energy change.

The government may choose such less politically identifiable gestures State loans to energy companies Or price stabilization mechanism. In this last scheme, protected by the energy companies, the State will compensate for the difference between the wholesale tariff and the invoice to the consumer.