PEOPLE across the UK have been warned energy bills could hit a staggering high of £4200 in January as experts blamed Ofgem for part of a massive hike in energy bills.
In a new dire outlook for households, Cornwall Insight said that bills are set to soar to around £3582 in October, from £1971 today, before rising even further in the New Year.
Ofgem is set to put the price cap at £4266 for the average household in the three months from the beginning of January.
The energy consultancy said that this was around £650 more than its previous forecast.
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Martin Lewis slams 'zombie government' amid tragic update on energy bill price hikes
The “tragic” predictions urged Money Saving Expert founder Martin Lewis to return from a work and social media break.
The consumer champion said: “I am still on my social media and work break.
“Yet I felt this news was too big and too damaging not [to] use my platform to try and put pressure on for sensible urgent action from political powers. Back to silence if I can.”
He warned: “Tragic news. The latest @CornwallInsight prediction, based on Ofgem's new methodology, is an 81% price cap rise in Oct (taking typical bill to £3582/yr) and a further 19% in Jan (so £4266/yr).
"Action and planning is needed now. The zombie govt needs [to] wake up sooner than 5 Sept.
“These amounts are unaffordable for millions. The Jan figure equates to 45% of the full new state pension, and a higher proportion of the old one. The rise alone on the Jan prediction, from when the help was first announced in May, is roughly £1400/yr.”
He added: “That rise alone swallows up not just £400 help for all homes, but even the £1200 for the poorest. This will leave many destitute.
“Tax cuts won't help poorest incl many elderly and disabled who've higher usage. Cutting green levy'd be just tiny sticking plaster on a gaping wound.”
“The leadership debate must not ignore this portentous national cataclysm anymore.
"They can't say they weren't warned. The excuse 'we need to wait for Ofgem figure' doesn't wash. In May govt asked Ofgem for forward guidance & made plans based on that. It can do the same now.
“An action plan is needed TODAY.
“They are all in the same party, let's call on them to come together for the good of the nation rather than personal point scoring. People's livelihoods, mental wellbeing and in some cases very lives depend on this. This is desperate.”
Tragic news The latest @CornwallInsight prediction, based on Ofgem's new methodology, is an 81% price cap rise in Oct (taking typical bill to £3,582/yr) and a further 19% in Jan (so £4,266/yr) Action & planning is needed now. The zombie govt needs wake up sooner than 5 Sept...
— Martin Lewis (@MartinSLewis) August 9, 2022
Cost of living crisis set to worsen
It comes as Ofgem last week announced changes to how it will calculate the price cap on energy bills going forward.
“While our price cap forecasts have been steadily rising since the summer 2022 cap was set in April, an increase of over £650 in the January predictions comes as a fresh shock,” said Craig Lowrey, principal consultant at Cornwall Insight.
“The cost-of-living crisis was already top of the news agenda as more and more people face fuel poverty – this will only compound the concerns.
“Many may consider the changes made by Ofgem to the hedging formula, which have contributed to the predicted increase in bills, to be unwise at a time when so many people are already struggling.”
