London Daily

Focus on the big picture.
Thursday, Dec 04, 2025

Energy customers faced unprecedented bills in 2022

Energy customers faced unprecedented bills in 2022

The Government was forced to intervene to protect people from serious economic harm as energy prices soared.
The crisis that defined 2022 for many Britons started a few days early for utilities expert Martin Young, as he stared at his computer screen at a new figure that had popped up.

Plugging gas and electricity prices into a formula he had designed in December 2021, Mr Young saw before almost anyone else that the average energy bill would reach a massive new record in the new year.

“I pulled it all together, pushed the magic button and the magic button came out with a number which was about £1,950,” he told the PA news agency.

The analyst, who works for Investec, thought “wow”.

“I thought that’s such a big jump that I better check it. And I had indeed made a little mistake, which I corrected and my number jumped up to £1,995.”

Six minutes after Mr Young put out a note, he was already being contacted by reporters as they saw the first predictions of £2,000 energy bills.

Months later the bills would almost seem quaint. By August this year some were predicting energy bills of up to £7,700 for the average household.

They were figures which forced the Government to intervene in the UK’s energy system in a way not seen for decades.

It was a year when war closed off pipelines and even blew some of them up, warnings of the first planned blackouts in decades emerged, and the Government promised to pay more than 30p every time someone turned on their oven for around half an hour.

It was already clear when Mr Young made his calculations last December that things were going to be difficult on energy markets, but just how difficult was hard to fathom until Russian tanks rolled towards Kyiv in February.

The war took an already volatile energy market and squeezed it – sending European gas prices to the highest they have ever been – at least as long as records exist.

It was Vladimir Putin’s gamble that the gas that he sent to Europe could be just as important a weapon in his plans to overrun Ukraine as the tanks he sent to Ukraine.

But it was a miscalculation. The tanks inflicted pain on Ukraine, but could not break it, and the same proved true for the gas coming to Europe.

Putin’s resource war – and his actual war – were certainly painful for Britons. By May the Government here was forced to promise to pay £400 towards the bills of every household in the country, plus extra for the more vulnerable.

But at that point, the forecasts that Mr Young and others were producing showed that bills could reach £2,800 by the autumn.

“I was saying that it just wasn’t enough (support). That if you went to £2,800 that was going to be devastating for British households.”

And as the months dragged on it became clear this would not be anywhere near enough to protect people from freezing in their homes this winter.

To the chagrin of campaigners it took until Britain had a new prime minister in September for an announcement of extra support.

The Government then took the extraordinary measure of accepting a potentially limitless bill for helping households to buy energy.

Under the new system, households would only pay 34p per unit of electricity and 10.3p per unit of gas to run their homes. The Government would pay the rest – no matter how much that ended up being.

After Liz Truss was forced out, the Government said it would slash this support package from two years to six months, and replace it with something less generous afterwards.

The Government has been left with the headache of how to pay for this huge scheme – the full price of which will not be clear for some time to come.

It has turned to some of the biggest energy companies to help raise some of the billions that it will need for the time ahead. Chancellor Jeremy Hunt hopes that he can raise £40 billion through the new windfall tax on the energy companies making record profits.

Globally the energy crisis sparked calls for an increased acceleration of the roll-out of renewable energy, which has been forced to pick up some of the slack caused by the limited availability of gas.

However in an attempt to find alternative energy sources, old coal and nuclear were fired up again, or saw their lives extended.

According to recent figures from the International Energy Agency coal use was set to rise 1.2% in 2022, breaching an all-time record set in 2013.
Newsletter

Related Articles

0:00
0:00
Close
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×