UK energy price cap may spike to $4,006 per house

Bloomberg

The UK’s cap on energy prices could spike another 50% in October to more than 3,000 pounds ($4,006) per household following huge gains in the wholesale natural gas and electricity markets, according to Investec Bank Ltd.
The calculation assumes no change in prices over the remainder of the observation window that sets prices, but sustained market rallies could lead to another significant increase in the cap in October, said Martin Young, an analyst for Investec.
“This could be devastating for UK households,” he said. “The political crisis will
intensify.”
The price cap already will jump 54% in April to 1,971 pounds, potentially pushing about 5 million more households into fuel poverty. Another increase in October is widely expected, and it could be even more acute because of rising wholesale costs driven by fears about disruptions to gas supply after Russia invaded Ukraine.
The UK government has pledged 9 billion pounds in aid to help households bear the burden of the worst cost-of-living crisis in decades. About 80% of households will get 150 pounds off their council tax bill in April, and all customers will receive a 200-pound loan in October.