Gas bills may escape worst impact
The Centrica chairman offered some relief for households worried about energy bills. He explained the Strait of Hormuz closure affects oil more severely than gas: «The world uses about 100m barrels of oil a day. We’ve lost about 20% of that through the strait of Hormuz. The loss of gas through the strait of Hormuz being closed is about three or 4% of global gas.»
«So the impact on gas, and therefore on electricity bills, should be lower than the impact on oil. So, my gut feel is that you’ll see more of an impact of this in the petrol pumps than you will in bills,» O’Shea said.
Government weighs response
Government officials said there are currently no plans for a temporary profit cap, though the possibility has not been ruled out. Housing Secretary Steve Reed said on Sunday: «The government will take what action is necessary . . . we are monitoring this, believe me, hour by hour, and as intervention is required the government is making appropriate interventions, we are focusing on keeping bills down.»
The government has already introduced a fund of more than £50 million for low-income households reliant on heating oil. Prime Minister Keir Starmer is expected to hold an emergency Cobra meeting this week with cabinet ministers and Bank of England governor Andrew Bailey.
Cornwall Insight forecasts the energy price cap for July to September will be £1,973, representing a £332 increase for the typical household compared to the current quarter.
Note: This article was created with Artificial Intelligence (AI).