Consumers in the UK are facing a massive increase in their electricity bills as gas supplies to the grid are being cut off and the cost of maintaining the grid is rising rapidly.
The cost of electricity for the average UK household is expected to rise by £3,200 per year by 2021, according to new research by the British Energy Research Institute.
The average increase for a typical household is estimated to be £1,100 per year.
The report comes after a rise in the cost and availability of gas supplies for the UK grid, with the country’s biggest natural gas provider, BP, cutting its gas supply to Britain from the US last month.BP announced in December that it would cut its gas supplies by 25 percent as part of a plan to protect its financial interests.
The UK’s electricity prices are expected to reach a record high of £4,100 in 2021, with average household bills rising by £1.8 per year, according the research.
Gas supplies to British households are already severely restricted by the government’s cap on the number of gas cylinders being sold in the country.
Gas suppliers are allowed to sell up to six million cubic metres (mcm) of gas per month.
The Government plans to phase out the cap by 2022, with more than two million mcm of gas expected to be available for sale by 2025.
The average electricity bill in the United Kingdom is estimated at £3.35 a week, according a new report from the British Government.
The cost of gas to British homes is expected increase by £2,200 annually.
The gas price increase in the US is a major concern for many consumers, with US utilities facing a record surge in their costs due to an increased supply of gas from fracking operations in shale regions.
The government is currently considering a reduction in the cap to 5 million mmm of gas being sold per year from 2020, with an additional 1.5 mcm available to be sold from 2021.
Gas prices in the U.S. have already risen dramatically since the end of 2016.
Last week, the price of a barrel of West Texas Intermediate crude rose to an all-time high of $147.92 a barrel, with prices reaching a record of $174.00 per barrel on Monday.