- Energy prices are expected to touch £3,250 per year in October when the energy price cap revision takes place.
- This would push 8.2 million people into fuel poverty, the National Energy Action has warned.
Britons are struggling with high energy bills after the energy price cap revision came into effect in April this year. These bills are already unaffordable for millions of households, but the situation is likely to deteriorate as they are estimated to go up further this year.
According to data consultancy firm Cornwall Insight, the electricity bills in the UK could rise from the current £1,971 to £3,245 per year in October and reach £3,364 at the start of next year. With the energy price cap set to be revised later this year in October, this could well lead to a significant rise in the energy bills.
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According to the National Energy Action (NEA), if the bills reach £3,250 per year, approximately 8.2 million British households could be staring at fuel poverty.
This will be almost double the 4.5 million in October 2021, when the energy price cap revision put the average energy bill at £1,271 per year. The charity also said this would force millions of people to choose between heating and eating, pushing them into spiralling debt.
The government has announced several measures to provide some relief to households from rising energy bills, including the £400 energy rebate for all. NEA said this rebate was taken into account while calculating the numbers.
Here is a look at some energy-related stocks on the London Stock Exchange.
National Grid Plc (LON: NG.)
National Grid is the world's largest publicly traded utility business which boasts of a market cap of £40,183.33 million. The energy and gas firm has operations in both the UK and the US, and its share prices have witnessed a growth by 17.08% over the past 12 months, and the EPS currently stands at 0.47. Shares of NG., however on 21 July were down by 1.95% at GBX 1,079.50 as of 1:12 pm GMT+1..
Centrica Plc (LON: CNA)
Centrica is the UK's leading electricity and gas supplier. It has been awarded the gas storage licence to reopen a mothballed storage site off England's east coast as the government plans to have sufficient gas stocks for winters. The company's shares were down 0.75% at GBX 87.16 on Thursday at 1:16 pm GMT+1, with a market cap of £5,188.03 million. The shares have given significant returns of 76.19% to investors over the past year, while the year-to-date returns are at 21.71%.
ContourGlobal Plc (LON: GLO)
Another leading British power generation firm, ContourGlobal, is listed on the mid-cap focused FTSE 250 index. It holds a market cap of £1,667.51 million, and its share price stood at GBX 254.00 as of 1:21 pm GMT+1 on Thursday. The stock has offered a return of 34.51% to investors in the past 12 months, and its year-to-date return stands at 32.97%. The EPS is currently at 0.02.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.