AUS
NZ
UK
CA
USA
IND
.jpg)
_10_04_2024_16_38_50_427275.jpg)
Highlights
- The energy price cap in the UK is all set to rise from 1 April onwards, as per energy regulator Ofgem.
- The energy bills would potentially rise by 54%, making it hard for millions of UK households to afford energy.
- In 2021, the price cap change devasted the utility sector, with around 25 UK suppliers going bust.
Soaring energy prices have lately been the leading reason for rising inflation levels in the UK. On Thursday, UK energy regulator Ofgem announced the energy price cap in the UK is all set to rise from 1 April onwards, affecting around 22 million customers. There would be an average price increase of £693, up from £1,277 to £1,971 a year, for the customers on default tariffs paying by direct debit. For the prepayment customers, the average increase would be £708, up from £1,309 to £2,017.
This was the second largest increase in energy bills in the last six months. The increase means that the globally soaring gas prices would burden the UK households with a record 54% hike in bills, which would potentially make it hard for millions to afford energy.
The Boris Johnson government has offered a relief to all households. Chancellor Rishi Sunak said all households will receive £200 off their energy bills, which they have to pay back at the rate of £40 over the next five years starting from 2023.
In 2021, the price cap change devasted the utility sector while wholesale gas prices skyrocketed. The year saw around 25 UK suppliers going bust and the companies, which took over the customers of the bankrupt rivals, were overburdened, leading to fears of more bankruptcies.
Let’s take a look at 5 UK energy stocks that may be impacted by the new developments.
RELATED READ: Is it right time to invest in FTSE renewable energy stocks?
© 2022 Kalkine Media®
- BP plc (LON: BP)
The current market cap of the FTSE100-listed oil and gas supermajor, BP plc, stands at £77,132.37 million, and it has provided a return of 56.19% to its shareholders over the past year as of 4 February 2022. BP plc’s shares were trading at GBX 403.95, up by 2.94%, at 9:20 AM (GMT) on 4 February 2022.
- ITM Power Plc (LON: ITM)
The current market cap of the renewable energy company, ITM Power Plc, stands at £1,562.33 million, and it has provided a return of -60.31% to its shareholders over the past year as of 4 February 2022. ITM Power plc’s shares were trading at GBX 259.80, up by 1.96%, at 9.20 AM (GMT) on 4 February 2022.
RELATED READ: Energy bills could increase further in 2022: 2 FTSE 250 stocks to buy
- Ceres Power Holdings plc (LON: CWR)
The market cap of the FTSE AIM UK 50 Index constituent, Ceres Power Holdings plc, stands at £ 1,055.69 million, and it has provided a return of -61.59% to its shareholders over the past year as of 4 February 2022. Ceres Power Holdings plc’s shares were trading at GBX 548.50, down by 0.90%, at 9.20 AM (GMT) on 4 February 2022.
- TotalEnergies SE (LON: TTE)
The current market cap of the oil supermajor, TotalEnergies SE, stands at £111,509.51 million, and it has provided a return of 44.35% to its shareholders over the past year as of 4 February 2022. TotalEnergies SE’s shares were trading at EUR 49.75 at 9.20 AM (GMT) on 4 February 2022.
