Britain Braces for Energy Crisis as Winter Bills Soar

Andy Burnham's government is facing a severe energy crisis that could destroy his popularity. The cost-of-living crisis, which he promised to tackle during his summer honeymoon, has taken a turn for the worse with Ofgem's energy price cap expected to rise from £1,663 a year to £1,740 in October and up to £1,911 by January.

This would add almost £250 to the average annual bill, dwarfing the estimated £45 saving from lifting VAT. The increase is due to rising oil prices, which jumped to $100 a barrel before easing to around $83, putting pressure on motorists and piling strain on gas supplies.

Analysts at Wood Mackenzie warn that the threat to Qatari gas supplies risks pushing Europe into 'energy crisis territory', with storage sites only 50% full today. Britain is even more exposed due to its limited gas storage capacity, which allows it to buy cheap gas during the summer but forces it to pay peak winter prices during the colder months.

The country's reliance on gas boilers, despite efforts towards renewables, means that millions of households will feel the cold if gas prices spike again this winter. With Rough, Britain's largest gas storage facility, set to shut down from next April and not refilled for this winter, the new energy secretary, Miatta Fahnbulleh, needs to find a solution quickly.