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U.K. Households Face £18 Billion Increase in Energy Bills

  • Rise in price cap will increase costs passed to consumers
  • Wage inflation risks adding to calls for higher interest rates
Updated on

U.K. households are set for an 18-billion-pound ($24 billion) increase in energy bills next year, potentially squeezing consumer spending and adding pressure on the Bank of England to increase interest rates, according to Investec Plc. 

A surge in gas prices has left the energy price cap -- the ceiling for what firms can charge most customers -- on course to increase by 56% in April, to an average of 2,000 pounds per household a year, analysts Nathan Piper, Sandra Horsfield and Martin Young wrote in a report.