UK: Ofgem To Raise Energy Price Cap To $4k

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The Facts

  • The UK's top energy regulator, Ofgem, has announced that the energy price cap will increase by 80% to £3,549 ($4,189) from the start of October.

  • The price cap - reviewed twice yearly - sets limits on how much retailers can charge for gas and electricity. It's not a strict upper limit, but rather reflects the yearly average consumption of UK households.


The Spin

Left narrative

Downing Street has shown a dereliction of duty at a time when ordinary people are struggling to afford basic necessities. The Conservative Party must stop prioritizing its own leadership election and must start acting to protect the most vulnerable from the effects of corporate greed and privatized public services.

Right narrative

Despite the assertions of the Labour Party, the government cannot control the international energy market. Gas and electricity companies aren't profiteering - the invasion of Ukraine has driven up wholesale costs and the cap has even forced dozens of companies to go under by keeping prices artificially low for consumers. Johnson's administration cannot be held responsible for these circumstances.

Narrative C

It's not just Russia pushing up energy prices but the effects of climate change. The UK is a net importer of energy from nations like Norway, Belgium, and the Netherlands, but they have been hit by drought, forcing down their energy production. To mitigate the cost of living crisis we must look not only to geopolitics but to addressing climate change.

Nerd narrative

There is a 35% chance that the EU will meet its Paris Climate Agreement goals, according to the Metaculus prediction community.


Political split

LEFT

RIGHT

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