Household energy bills could surpass £4,200 next year, says energy analyst.
New dramatic forecasts from Cornwall Insights predict bills will rise to £4,266 in January, before rising again in April to £4,427 - the previous forecast was for £3,729 in April. This means the average household spend will increase to around £355 per month.
Cornwall Insight said these revisions were due to energy regulator Ofgem's "change in calculation methodology." This change in methodology refers to Ofgem's decision to change the price cap every three months, instead of six, and increased wholesale prices for its high forecast. Ofgem said the more frequent reviews allow energy companies to provide more accurate pricing for customers
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The price cap sets the maximum amount energy companies can charge per unit for gas and electricity - and the average bill is based on what the predicted cap will be. The cap is set by Ofgem based on the wholesale price of energy.
Liverpool Echo reports a statement from the organisation said: "These new forecasts for the January to March 2023 quarter further underline the need for support for households who will struggle to pay their energy bills this winter."
Shadow work and pensions secretary Jonathan Ashworth reacted to these figures, and stated: "Utterly devastating. Families and pensioners will be pushed into destitution. Instead of fantasy island Tory leadership unfunded promises we need action. Yet the zombie government has gone awol."
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