The Office for National Statistic revealed that UK gas price inflation remained at 1.7% last month, as households prepare for another trying winter.
According to new data from the Office for National Statistics, gas and electricity prices rose at 1.7% and 6.7% respectively in the year to September 2023, meaning that both remained unchanged from August.
Gas prices fell at record rates (25.2%) between June and July 2023, which the Office for National Statistics largely attributed Ofgem price cap, which fell from £3,280 in June to £2,074 in July. Electricity prices fell by 8.6% during the same period.
The Office for National Statistics noted that the fall of gas prices between June and July this year was the largest monthly fall in gas prices since at least 1988.
However, recent media reports warn that UK wholesale prices have now risen again to their highest since February this year. According to Sky News, wholesale gas prices rose to almost £1.35 per therm on Friday afternoon (13 October).
Responding to the news, Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit said: “This is a reminder that without the shift to renewables and electric heat pumps, the UK is increasingly at the mercy of this kind of gas price volatility.
“The North Sea won’t help us as the price of gas is largely set internationally and more drilling won’t bring down bills. Had the government’s home energy efficiency schemes not been in decline, more families would be insulated from high bills this winter, but instead many will be colder and poorer.”
UK households have already begun trying to insulate themselves from rising energy prices. The Office for National Statistics’ latest public opinions and social trends bulletin revealed that 47% of adults in Britain are using less gas and electricity in their homes as a result of the rising cost of living.
Moreover, around four in ten (43%) energy bill payers reported that they were “very” or “somewhat” difficult to afford, between 29 September to 1 October 2023.
This is evidenced in the proportion of electricity and gas Direct Debits failing due to insufficient funds, which rose by one percentage point between February 2019 and September 2023, according to the Office for National Statistics.
