Households across the UK have been warned they could face an annual energy bill in excess of £3,600 this winter. Energy experts at Cornwall Insight said a regular gas and electricity bill in Scotland, England and Wales could reach £3,615 in the new year, which is hundreds of pounds more than previous predictions.
In May, the UK Government announced an energy costs support package, worth £400 per household, in response to predictions that bills would rise to £2,800 for the average household in October. Last month, Cornwall Insight predicted annual energy bills would typically rise to £3,244 and £3,363 from January, but circumstances have changed significantly since then.
The company told BBC Breakfast that such a bill is now likely to rise to £3,358 from October and £3,615 from January.
Cornwall Insight’s principal consultant, Craig Lowrey, said surging gas prices and concerns about Russian supply had prompted the increase.
He told the programme: “While the rise in forecasts for October and January is a pressing concern, it is not only the level, but the duration, of the rises that makes these new forecasts so devastating.
“Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024.”
Dr Lowrey joined other experts in saying UK Government support will “only scratch the surface” for households.
“While the UK Government has pledged some support for October’s energy rise, our cap forecast has increased by over £500 since the funding was proposed, and the truth is the £400 pledged will only scratch the surface of this problem.”
Charity National Energy Action last month predicted that, should the average bill reach £3,250 per year, 8.2 million UK households will be in fuel poverty - the equivalent of one in three.
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