LONDON - Energy cost increases are causing pain in the United Kingdom hotel industry, and with domestic residents who face less discretionary income because of inflation-linked, higher gas and electricity prices.

On Aug. 26, the Office of Gas & Electricity Markets, known as OFGEM, a statutory body set up by Parliament to regulate energy prices, best practices and instigate greener industry methodology, increased the energy price cap to 3,549 pounds sterling ($4,160) per year, an increase of more than 80%, starting in October.

The government predicts this increase will affect 22 million customers.

The cap also was raised in April 2022 from 1,277 pounds sterling ($1,493) per year to 1,971 pounds sterling ($2,304) per year, an increase of more than 54%. From April to October 2022, the overall price increase has been almost 180%, and there are more increases due in 2023.

OFGEM blames inflation, the Russian invasion of Ukraine and the subsequent geopolitical changes to European energy provision for the increase.

Read the full article at HotelNewsNow (part of CoStar)