America is on track to…
U.S. manufacturing activity has declined for the…
The energy bill for Royal buildings in the UK will soar by $2.71 million (2 million pounds) after energy market regulator Ofgem raised the cap on electricity bills by 54 percent from April.
After the hike, the Queen will have to pay some $5.41 million (4 million pounds) for electricity, Yahoo News reported.
Ofgem reported last Thursday the energy price cap would be raised by 54 percent or $937 (693 pounds) from April 1, following the steep increase in natural gas prices last autumn.
The price cap is a mechanism aimed at protecting customers from paying excessively for energy but also at protecting energy suppliers from suffering losses in cases such as the current gas price rally. As a result, the additional costs for energy stemming from the rally will now be passed on to end consumers.
“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can,” said Ofgem chief executive Jonathan Brearley.
“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas,” he added.
For some of the 22 million households affected by the hike, prices will increase by the equivalent of $937 annually, but for others, the increase will be more significant, topping $1,000 depending on whether they pay by direct debit or prepay for their electricity.
For the Royal family, the bill for Buckingham Palace alone could swell to above $2 million after April. The overall bill for Royal properties will likely be well in excess of the equivalent of $4 million.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com