Cornwall Insight has released its latest Default Tariff Cap forecast – calculated from market closing prices on Friday 3 February – showing a rise of just under 10% from January’s predictions.
This month’s forecast for Default Tariff Cap between April and June 2023 has increased by £129.32, whilst prices for July to September and October to December have risen by £160.50 and £148.30 respectively.
Cornwall Insight’s Default tariff cap forecasts
Despite this increase, prices are still at least £200/year lowr than predictions at the beginning of this year. Cornwall Insight confirmed that positive gas storage and demand reductions in Europe contributed to these falling prices.
A mild winter, coupled with record renewable generation has also allowed the market a healthier outlook.
Cornwall Insight stated that the price cap observation window for April to June 2023 will close on 17 February, with its final predictions released the following week commencing 20 February, a week ahead of Ofgem’s announcement confirming the quarter’s price cap on 27 February.
In a briefing for the Institute for Government in January, Ofgem’s CEO, Jonathan Brearley, welcomed a review of the retail price regulation framework, highlighting the benefits of a flexible approach to achieving the aims of the price gap.
