Millions of households across the country are being warned that the price cap on energy bills could rise even higher than previously forecast next year. Gas prices spiked again on Monday and unless they drop in the coming months, average households could be facing an annual energy bill of £4,722 from January and £5,601 from April.
Energy consultancy, Auxilione, said the price of buying gas for the fourth quarter of this year is now around 100p higher per therm than it was just two weeks ago, while electricity prices have risen by around £100 per megawatt hour. One therm cost 563p as markets wrapped up on Monday and a megawatt hour of electricity cost £606.
The new forecast predicts that bills will start falling from July, initially to £4,811 and then to £4,446. But this is still thousands of pounds more than families are paying at the moment.
On Monday the Labour Party called for the price cap to be frozen at its current level of £1,971 until April to help struggling families through an otherwise disastrous winter.
It is the latest pressure to be put on the UK Government to add to its £400 help for households with bills that will be paid in six instalments starting in October.
The support was announced in May when experts thought the price cap would only reach £2,800 in October.
Commenting on the latest forecast, Conor Forbes, director of policy with Advice Direct Scotland, said: “As gas prices continue to rise, forecasters are being forced to revise their gloomy predictions.
“This latest warning will add to the financial misery facing many households across Scotland.
“There is a lot of talk about forthcoming government action, but there are steps that households in Scotland can take today to seek support.
“Our expert advisers at the national energyadvice.scot service provide free, impartial and practical advice on energy bills, including accessing grants and benefits.”
On Monday the Guardian reported that four major energy suppliers - ScottishPower, E.on, Octopus Energy and British Gas-owner Centrica - are in favour of a fund that could freeze bills for two years.
The two first suppliers have suggested a so-called tariff deficit fund to ministers. Banks would supply the cash under a UK Government guarantee that would let bills be frozen for the period.
The banks would then be paid back over 10 to 15 years.
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