Energy bills could reach more than £ 3,300 a year this winter in the latest hit for households struggling to cope with the rising cost of living crisis.
Research firm Cornwall Insight released new higher forecasts showing that the energy price cap is on track to rise to £ 3,244 a year in October, when it adjusts as wholesale prices continue to rise. The default rate cap is expected to rise again in January, to £ 3,363 a year, a significant increase from the Cornwall Insight forecast of £ 3,003 just two weeks ago.
The limit, which is set quarterly by energy industry regulator Ofgem, is currently at a record £ 1,971 a year.
“Energy consumers are facing the prospect of a very expensive winter,” said Craig Lowery, chief consultant at Cornwall Insight. “As the energy market continues to struggle with global political and economic uncertainty, the corresponding high wholesale prices and the UK’s continued dependence on energy imports have once again seen predictions for the tariff cap for domestic consumer defect at even more unattainable levels. ”
Cornwall Insight blamed the current uncertainty over Russian gas flows in continental Europe, as well as more recent concerns, such as the stalled strike by Norwegian gas workers, to fuel the high wholesale prices that are finally being passed on to consumers.
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“There is always some hope that the market will stabilize and withdraw in time for the January cap setting,” Lowery said. “However, with the announcement of the October limit just a month away, high wholesale prices are already being incorporated into the figure, with little hope of easing the high energy bills expected” .
According to the National Statistics Office, consumers are increasingly struggling with rising cost of living – inflation is advancing to the peak of 40 years – and half of Britons say they bought less food than normal between June 22 and July 3.
Cornwall Insight’s latest forecasts do not include the impact of the government’s multimillion-dollar support package, including a £ 400 discount for every household in the country in October and a £ 150 discount on municipal tax bills. Vulnerable people are entitled to more financial support.