The latest predictions by Cornwall Insight detail how the energy price cap for winter 2022-23 is expected to be set at £2,512.
This is a fall of £400 since the consultancy’s last prediction of £2,962, however it would still see an average consumer’s energy bill rise by over £500 from the cap due to be implemented in April, which itself rose by 54% – or £694 – to £1,971.
Made on 18 March, Cornwall Insight’s predictions also detail expectations for the summer 2023 price cap to be set at £2,003, with this made up of £892 for electricity and £1,111 for gas. The winter prediction, meanwhile, is broken down into £1,056 for electricity and £1,456 for gas.
“Energy prices are very volatile and responsive to changing global events right now. There is a way to run until the level of the winter cap will finally be known, and much could happen, but our forecast shows already that there is an obvious and real risk that household energy bills are likely to increase again in October,” Gareth Miller, CEO at Cornwall Insight said.
“The consequences of ever-increasing bills, arising from fossil fuel price increases, risks undermining confidence in energy policy generally,” Miller added.
With the announcement of the April price cap, chancellor Rishi Sunak unveiled a suite of support measures including a £200 repayable loan for households, and a £150 rebate on council tax which does not need to be repaid.
Meanwhile, yesterday’s (23 March) Spring Statement saw Sunak reduce VAT on energy efficiency measures such as solar PV and heat pumps to 0% – a measure that has long been called for by the industry. Sunak said this would help families become more energy efficient, reducing annual energy bills.
Sunak also announced a doubling of the household support fund to £1 billion, which be used by local authorities to support vulnerable households to meet the cost of essentials such as food, clothing and utilities.
It follows Citizens Advice last week warning that one in four adults may be unable to pay their energy bills if the price cap is increased again for the winter period, while the End Fuel Poverty Coalition suggested 8.5 million UK households will face fuel poverty following the winter price cap.