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The government will have to pay nearly 21 percent more on average household energy bills from early next year after regulators lifted the energy price cap.

The move will not affect household energy bills, which are capped at an average of £2,500 by the government’s energy price guarantee.

However, the price cap increase set by Ofgem has increased the cost to the government as this would have been the cap against which energy companies could charge households for their services.

Today Ofgem raised the price cap from £3,549 to £4,279 from January, forcing the Chancellor to pay an extra £730 per household on average to cover the cost of supplying gas and electricity to Britain’s homes.

It means the Treasury would have to allocate an average of another £1,779 per home for the year to pay for the energy costs of Britain’s nearly 28 million households.

The increase will cost taxpayers £42 billion over 18 months, according to analysts Cornwall Insight.

Experts from energy consultancy Auxilione estimate that the new ceiling will cost the government around £15.1bn between January and March to subsidize household bills.

However, in Ofgem’s next announcement in February, the government capped its bill if the cap were to rise again.

Jeremy Hunt announced in his autumn statement that the energy price guarantee will increase from £2,500 to an average of £3,000 a year from 1 April to the end of March 2024.

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4) Middle-class outcry over whole-wheat flour in “white” sourdough – Ocado buyers are rioting after a fancy sourdough white bread recipe was revised to add whole-wheat flour, prompting the bakery behind it to cut costs from the Ukraine war. to deny.

5) Rishi Sunak Faces Backseat Rebellion Over Wind Turbines Amid Energy Crisis – Rishi Sunak Faces Revolt From His MPs Over Onshore Wind Amid Efforts To Overcome Energy Crisis. Simon Clarke, Member of Parliament for Middlesbrough South and East Cleveland, has introduced an amendment to the law to relax planning rules to make it easier to build turbines if communities want them to.

What happened from one day to the next

In the US, minutes of the Federal Reserve meeting, at which officials raised interest rates by 0.75 percentage points for the fourth consecutive time, suggested support for a slower pace of rate hikes.

Central bank officials are trying to stamp out inflation around the world.

Equities in the US closed higher as a result, with the S&P 500 rising 0.6 percent, while the Dow Jones Industrial Average gained 0.3 percent. The Nasdaq composite closed 1 percent higher.

Bond yields fell. The yield on the 10-year benchmark US government debt, which affects mortgage rates, fell from 3.76 percent to 3.69 percent.

Crude oil prices fell 3.7 percent, weighing down on energy stocks. US homebuilders rebounded after a report showed the housing market was healthier than previously thought.

Meanwhile, Asian stocks rose on Thursday, buoyed by signs that the US Federal Reserve could slow the pace of rate hikes and news of new economic stimulus from China.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan rose 0.8 percent in early trading, boosted by a 0.6 percent gain in South Korean stocks, a 0.5 percent gain in Chinese blue chips and a 0.6 percent gain in Chinese blue chips. 0.9 percent in the Hong Kong Hang Seng index

Japan’s Nikkei rose 1.3%, S&P 500 futures gained 0.2% and Nasdaq futures rose 0.3%.

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