Martin Lewis has explained how much energy bills could rise by next April after Jeremy Hunt announced he will scale back Government help.
The MoneySavingExpert founder shared the latest prediction from analysts at Cornwall Insight following the speech from the new Chancellor.
Martin explained how Cornwall Insight say energy bills could hit £4,347 in April - but he admits this figure is subject to change, due to how far away April is.
“These are very early day predictions,” the MoneySavingExpert founder tweeted last night.
“We are not even in the April cap assessment period (17/11 to 17/2) yet, so could change a lot.”
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Analysts at RBC Capital Markets are forecasting a higher figure of £4,684.
The worst-case prediction comes from experts at Auxilione, who say the cap on energy bills could hit £5,000 next year.
It comes after Jeremy Hunt yesterday confirmed the Energy Price Guarantee will only run as a universal help for all households until April 2023.
The Government is changing the scheme into targeted support - although it has yet to confirm who exactly this will be, or if the headline £2,500 figure will remain.
The Energy Price Guarantee came into effect on October 1 and was meant to last for two years.
It was put in place as a replacement for the Ofgem energy price cap, after it was announced that energy bills will rise to £3,549.
The Government has yet to confirm if the Ofgem price cap will return in its previous form in April.
Much like the price cap, the Energy Price Guarantee isn't a total cap on your energy bill.
Instead, the Energy Price Guarantee does is cap the unit rates you’re charged for gas and electricity, plus the standing charges.
This means if you use more energy, you could end up paying more than £2,500. Similarly, use less energy and your bill should be less.
The £2,500 figure is just used to illustrate what a typical household is likely to spend on energy a year, under the capped unit rates.
Households are continuing to receive the £400 energy bill discount, which is being paid out in six instalments to further reduce financial strain.
This help will still continue as planned, with a discount of £66 being reimbursed to Brits in October and November, then £67 in December through to March.
Are you worried about rising energy bills? Let us know: mirror.money.saving@mirror.co.uk
