Energy giants set to rake in £170billion extra profit in next two years as Brits face 22% inflation
ENERGY giants are predicted to make £170billion in extra profits over the next two years, it emerged yesterday — as inflation was forecast to hit 22 per cent in January.
The rate will more than double to put an even bigger squeeze on families’ wallets.
Investment bank Goldman Sachs said it will be driven by another 80 per cent increase in the energy cap in 2023 as gas prices keep climbing.
Meanwhile leaked Treasury forecasts obtained by financial firm Bloomberg show oil and gas producers are set to make £170billion excess profits as the War in Ukraine sends global prices soaring.
They put added pressure on Liz Truss and Rishi Sunak — one of whom will be the next Prime Minister — to hit them with another windfall tax to fund support for struggling families.
But favourite Ms Truss is dead against a new tax.
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Goldman Sachs said the expected 80 per cent energy cap increase would be on top of October’s trebling in average bills to £3,549.
That is already unaffordable for one in three households. The US bank said headline inflation could now peak at 22.4 per cent next year and wipe 3.4 per cent off GDP.
It also expected a UK recession to start in October, with the economy shrinking by 0.6 per cent next year — less than the 1.5 per cent drop expected by the Bank of England.
Yesterday Boris Johnson said he would “not shrink” from acknowledging the tough months ahead but insisted his successor would dish out more help.
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The outgoing PM said: “There’s a huge amount coming.”
Meanwhile, the Government is looking at capping rents on social housing to protect millions of poorer tenants from price rises.
Of the Bloomberg report, a government spokesperson said: “We don’t recognise this analysis. The government has been clear that it wants to see the oil and gas sector reinvest its profits to support the economy, jobs, and the UK’s energy security."
