New tax could lead to further rise in energy prices

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

The budget yesterday was important in many aspects; with the price of living going up our daily household budget will take the hit as a result.

Energy prices are no stranger to the strain felt at the moment.

According to, the new carbon floor tax mentioned in yesterday's budget, could lead to significantly higher costs over the coming years.

The news led to a negative day in the market for the Drax Group Plc, which saw a reduction in share price as the fears grow.

A utilities analyst, Lakis Athanasiou, calmed the fears from the rising costs, claiming that: “The additional CO2 price is being set three years in advance so that generators will have time to include this rise in hedging activities, minimizing basis risk.”

Gas prices as such could potentially rise by around 4 pence with electricity seeing a similar increase.

As such it is going to be more important for people to compare gas and electricity prices in order to combat the impending costs that are looming.

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