London Daily

Focus on the big picture.
Saturday, Sep 05, 2026

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
UK Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
×