LONDON: British energy bills will climb 80 percent to an average of 3,549 pounds (USD 4,188) a year from October, the regulator said on Friday, falling millions of households into fuel poverty and businesses into jeopardy unless the government steps in. UK households need to look at how they are using energy, Chancellor Nadhim Zahawi suggested amid calls for urgent government intervention to tackle soaring bills.

It comes amid dire predictions about the effects the 80.06 percent increase in the price cap will have on millions of the poorest households throughout the UK. Outgoing Prime Minister Boris Johnson predicted a "tough" few months ahead but promised energy prices will eventually decline.

On Friday, Zahawi emphasised that the government is not paralysed by the leadership race and is instead concentrating on developing solutions for whoever wins. The new head of the governing Conservative party will be unveiled in the first week of September.

The chancellor assured reporters that the government will provide assistance, but he also acknowledged: "That is obviously insufficient. We must exert greater effort. I'm going to do all in my power to help the most vulnerable people who have no safety net so that this doesn't just serve as a bandage. "And we are developing those options for both households and businesses so that the new prime minister can make those choices on September 5.

So, today's message is: "We'll give the people this £37 billion to aid them now, and then more will come because we know this will continue in January and, of course, on into April and next year, and we have to be robust." Zahawi admitted that perhaps it is now more important than ever to pay attention to how we utilise energy.

"The truth is that we should all examine our energy usage. It is a challenging period. War is raging across our continent " he said.

The Chancellor has been meeting with executives from companies including Orsted, Newcleo, and RWE this week to discuss what more the sector can do to ensure that markets operate efficiently for consumers.

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