Energy bills are set to rise to above £3,600 a year this winter, consultants warn in their latest forecast.
Cornwall Insight said a standard gas and electricity bill could hit £3,615 in the new year, a rise of hundreds of pounds on previous predictions. Just last month, the same company forecast a rise to £3,244 in October and £3,363 in January 2023, but ever-changing circumstances led to Cornwall Insight telling BBC Breakfast that bills will jump to £3,358 from October and £3,615 from January.
A surge in gas prices and concerns about supply due to the Russian invasion of Ukraine triggered the increase. Cornwall Insight warns bills will get even higher towards 2024.
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Cornwall Insight's principal consultant, Craig Lowrey, told BBC: “However, 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,” he told the programme.
“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 - including Money Saving Expert founder Martin Lewis - in saying the Government support measures revealed in April will not be enough.
“While the 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.”
Last week, Martin Lewis called on Tory leaders to come up with an "urgent" action plan as the Cost of Living Crisis worsens.
On Friday, Richard Neudegg, director of regulation at Uswitch, called for the £400 to be increased to at least £600, and for payments to vulnerable households to rise from £650 to £950.
“The Government did the right thing by stepping in with wide-reaching support to try to help ease the blow. However, this support now looks like a severe under-estimation of what consumers need,” he said.
“Households need clarity to help them plan for the most expensive winter in living memory.”
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, or one in three.
In May, the 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.
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