Britons face higher energy bills after gas price spike

Energy prices will rise for millions of Britons from April, UK energy regulator Ofgem announced Tuesday after a recent spike to international gas prices.

The announcement adds to inflationary pressures in Britain, which is also suffering from stalled growth, heaping more pressure on the Labour government as it struggles to help grow the country’s economy.

Energy Secretary Ed Miliband said the higher-than-expected 6.4-percent increase in Britain’s energy price cap for the April-June period “is worrying news for many families”.

While gas consumption is typically lower for the country’s households during this period compared with the present first quarter when temperatures are colder, the price increase is a blow also for businesses facing a higher tax rate from next month.

The price cap will rise by £111 ($140) for an average household per year, Ofgem said.

An average annual bill for gas and electricity will rise to £1,849, it added following the third quarterly cap increase in a row.

“A recent spike in wholesale prices is the main driver of today’s price rise,” Ofgem said.

The regulator’s chief executive, Jonathan Brearley, added that Britain’s “reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills”.

Britain’s annual inflation rate had already risen more than expected last month, to three percent from 2.5.