Rip Off Britain: Woman had a ‘massive’ jump in her energy bill
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Families struggling with their energy bills could soon breathe a huge sigh of relief, as the latest predictions show that energy bills in the UK could fall to approximately £2,200 later this year. Households in the UK have been facing the worst impacts of the fossil fuel energy crisis in the past year, triggered by volatile natural gas prices that have been shaken by Russia’s invasion of Ukraine. After Ofgem raised the price cap on energy bills to an eye-watering £2,500 per year last October, the latest predictions show a glimmer of hope for households. Research firm Cornwall Insight’s latest forecasts for the Default Tariff Cap, commonly referred as a price cap, have shown that energy bills will fall twice this year.
They estimate that without Government support, a typical household will pay about £3,208 from April. While this is significantly higher than what Britons are paying right now, the price cap was previously estimated to hit £3,545.31 in the same period.
The energy experts also predicted that after the April- June quarter, households’ energy bills will plummet to approximately £2,200 from July, and would stay that way until the end of the year.
This a major lifeline for households across the UK, as prices are expected to be £300 lower than previous predictions, and going even lower than what households are paying right now.
They wrote: “Our forecasts show prices in the second half of 2023 remaining below the Energy Price Guarantee (EPG) level, and therefore will not cost the Government any money from July.
THIS IS A BREAKING STORY. MORE TO FOLLOW
“With wholesale prices still well above pre-pandemic levels, the lower cost of the scheme is likely to spark conversation on the additional energy bill support the Government may now be able to offer households.”
While energy prices are set to fall below the Government’s current price cap, in April, the Energy Price Guarantee is set to be raised to £3,000 per year, meaning that households could pay an additional £500 on their energy bills per year.
April also marks the point where the £400 Energy Bill Support Scheme ends, meaning that without support, households could end up £3,000 per year on their energy bills between April- June.
They wrote: “Thereafter, the political debate is likely to centre on household bills remaining about double the level that they were prior to the recent crisis, but with much less support available.
“We anticipate a particular emphasis on what this means for lower-income and lower-middle-income households. Of course, by this stage the Government may have developed more enduring reforms to tariffs to address these challenges.”
Source: Read Full Article
