Cornwall Insight: Don’t expect energy bills to ease this winter
Energy bills will remain near double pre-crisis levels, Cornwall Insight has suggested in its latest price cap forecasts.
The energy specialist expects the price cap to decline from its current rate of £2,074 per year for average use to £1,878 per year in October,
It will then hover within £40 of that total until July next year at the next two three-monthly updates.
The price cap has fallen sharply from its record £4,279 per year rate in January, in line with plummeting gas prices on the spot market – which have eventually been felt in futures contracts where suppliers buy their energy.
However, the cap is still significantly above the £1,000-£1,200 average that was maintained prior to the collapse of 30 domestic energy suppliers and Russia’s invasion of Ukraine, which caused wholesale prices to spike to record highs and vast instability across the energy market.
The cap is also below £2,500, the subsidised protection rate in the Energy Price Guarantee, meaning government support will not kick in for households except for those on pre-existing benefits such as the Warm Home Discount.
Greg Jackson chief executive of Octopus Energy told City A.M. last month there was every chance “a lot of households are not going to be ready” for less support and “may not be able to cope,” opening up the prospect of more support this winter.
Meanwhile, So Energy boss Monica Collings has called for targeted support for up to 10m households this winter, with Ofgem currently weighing up the idea of recommending a social tariff to the government.
