Early predictions show the energy price cap could hit £3,700 next April. The latest forecast from Cornwall Insight, which collects data and makes predictions about the energy market, said the price cap is likely to rise again in five months' time despite current prices already being 95% higher than they were last winter.
The predicted cap is due to come in when the UK Government’s energy price guarantee (EPG) comes to an end. The price guarantee was introduced by then-prime minister Liz Truss and saw the typical energy bill capped at £2,500 per year, but will only last until March 31, 2023, when the government will consider how to support households with their energy bills after that point.
The predicted April figure for a typical home is £3,702, which is £600 lower than the figure previously forecast – £4,348 - but is still more than £1,700 higher than the £1,971 price cap which was in place from April to October this year. It is also 48% higher than the existing price guarantee figure between now and April.
