Skip to content
Saturday 29 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,824.26
+0.29%
DAX
26,569.99
+0.77%
CAC 40
8,401.18
+0.98%
STOXX 50
6,485.67
+0.95%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Saturday 19 November 2022 8:09 am  |  Updated:  Saturday 19 November 2022 8:11 am

Brits set for painful hikes to energy bills despite more support, warn analysts

By: Nicholas Earl

Add as a preferred source on Google
Ofgem Price Cap Announcement

Household energy bills will continue to rise next year from record levels this winter, putting Brits under more pressure over the coming months, warn analysts.

Chancellor Jeremy Hunt extended the Energy Price Guarantee for a further 12-months from April at the autumn statement yesterday.

The support package will be slightly tapered, with average household bills priced in at £3,000 per year rather than £2,500 per year for the extended phase of the scheme – based on current wholesale price forecasts.

This equates to a £700-plus saving for energy users, with Cornwall Insight calculating the price cap at £3,739 per year from April in current market conditions.

It also predicts the full cost of the Energy Price Guarantee will rise to £39bn, which is considerably less than the £100bn-plus estimates for the original scheme before it was slashed by Jeremy Hunt, but is still around 60 per cent of the cost of the historic furlough package during the pandemic.

Dan Atzori, research partner at Cornwall Insight, believed the extended support scheme would be a “welcome shield” but still represented a £1,000-plus hike on energy bills from April, and a near trebling on typical household energy bills prior to the industry crisis and Russia’s invasion of Ukraine.

He said: “It will be critical to reassess support going into next winter before longer-term reforms are introduced in 2024.”

Prior to the Autumn statement, Cornwall Insight are releasing our latest April-June 23 price cap figures.

If the EPG is removed, we forecast a typical household will pay £3,739 p/a

Standing Charge (£/day): Elec – 0.37, Gas – 0.31
Unit Costs (p/kWh): Elec – 58.35, Gas – 15.01

— Cornwall Insight (@CornwallInsight) November 17, 2022

Industry group Energy UK also feared that people will still struggle to pay their energy bills, raising the question over whether further assistance might be needed for more vulnerable households.

Director of advocacy, Dhara Vyas, said: “Continued support for all households in 2023 is very welcome – but, at £3000 for an average home, many people still won’t be able to afford their energy bills.

“Suppliers will continue to do all they can to provide additional assistance and support for people who need it most. We look forward to working closely with Government on getting support to consumers and businesses that need it.”

Meanwhile, the Energy Bills Relief Scheme for businesses has been kept intact – with a ‘maximum discount’ £345 per megawatt hour for electricity and £91 per MWh for gas.

It is set for review later this year, with more targeted support expected to be unveiled form April.

Read more

Octopus boss Greg Jackson calls for ‘urgent reform’ on energy as bills rise

Octopus Energy, which was founded by Greg Jackson, is to spin-off Kraken. Chris Ratcliffe/Bloomberg via Getty Images

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

Related Topics

  • Energy

Trending Articles

  • Pensioners to hand over bank statements in government benefits crackdown

  • Jamie Carragher: HMRC petitions for Sky Sports star to be declared bankrupt

  • Brewdog founder James Watt hits out at ‘total silence’ over new venture

  • Jamie Vardy bags Bundesliga rights as he steps up streaming war with Neville and Lineker

  • Lloyds Bank and Halifax users unable to use app in latest outage

More from Morning Wire

  • Octopus boss Greg Jackson calls for ‘urgent reform’ on energy as bills rise

    Politics
    Octopus Energy, which was founded by Greg Jackson, is to spin-off Kraken. Chris Ratcliffe/Bloomberg via Getty Images
  • ‘Broken promises’: Burnham under fire on cost-of-living plans as energy bills set to surge

    Politics
    Man in glasses and maroon jacket speaking, with out-of-focus figures in the background.
  • Energy price cap rises to three-year high

    Energy
    Smartphone displaying an energy bill, with British pounds and coins beside it, symbolizing rising costs.
  • Soaring energy bills set to fuel inflation spike

    Economics
    Smartphone displaying an energy bill notification with British coins and a banknote nearby.
  • Consumer confidence extends upward streak in boost to Burnham and Healey

    Politics
    High street bustling with shoppers and vibrant storefronts, showcasing dynamic urban life and economic activity
  • Tories say households could save £540 a year by scrapping net zero

    Energy
    Kemi Badenoch speaks, gesturing with hands, while Claire Coutinho listens intently at a table with coffee cups.
  • Britain faces energy squeeze from solar eclipse

    Energy
    Rows of blue solar panels in a field, generating clean energy, with green trees in the background.
  • Energy discount scheme for homes near new pylons branded ‘bribe’ by Reform

    Energy
    Pylons standing tall against a clear sky following Engies acquisition of UK Power Networks, symbolizing energy sector growth.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook