Average annual energy bills could hit more than £7,000 by spring next year, according to recent warnings. It comes as Ofgem announced that the energy price cap is set to increase by 80 per cent from £1,971 to £3,549 in October this year.
Recent forecasts have suggested that the energy price cap, which is now being reviewed every three months instead of every six, could then top £5,400 in January, and rise above £7,000 in April, before falling back again in July and October next year. The cap is calculated based on the wholesale price of gas and electricity, which continues to soar amid the ongoing crisis in Ukraine.
Predictions are varied but experts at Auxilione expect the cap to reach £5,405 in January and £7,263 in April, while Cornwall Insight put the price cap slightly lower at £5,387 in January and £6,616 in April. It is the grimmest forecast yet from the two outfits, whose predictions for October’s price cap were close to Ofgem’s decision, with Auxilione’s final forecast just £27 above what the cap was set at.
