London Daily

Focus on the big picture.
Monday, Sep 21, 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
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
×