Why energy prices are so high right now

UK energy prices are going through the roof – and not just here. They are rising all around the world. Saloni Sardana explains what’s going on.

High energy bill
The UK's energy price cap rose by £693 in April, and will rise by a further £800 in October
(Image credit: © Daniel Harvey Gonzalez/In Pictures via Getty Images)

Higher energy prices are a growing problem around the world. They are one of the main drivers of the cost-of-living crisis both in the UK and overseas as the price of natural gas, oil, electricity and coal has soared.

In the UK the situation has prompted two rises already this year in the energy price cap. Ofgem, the energy regulator, confirmed that the energy price cap will rise by £800 in October, bringing the total price cap to £2,800. The price cap had already risen by £693 in April, putting strain on consumers’ finances.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni