Energy bills could hit £4,200 a year from January in what is set to be another blow for households across the country, experts have warned. The Cornwall Insight says the average home will pay £3,582 a year from October 2022 and £4,266 a year from January 2023.
The firm's predictions got worse from last week, when it said gas and electricity bills would be £3,359 a year in October and £3,616 in January. A Cornwall Insight statement said this was due to "a change in calculation methodology" by the energy regulator, Ofgem.
This troubling news comes after reports that bills could rise by around £6,000 by the end of the year. The average household is expected to pay £6,219 more this December compared to the same month of 2021 as the cost of living crisis continues to grip families, according to the Centre for Economic and Business Research (CEBR).
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CEBR said bills will go up by £4,610 between now and December, The Mirror reports. The average energy bill could soar by £1,645 within five months to hit £3,616 a year, power experts at Cornwall Insight said last week.
And with the Bank of England raising base rates, mortgage costs are rising, too. Last week the central bank increased the base rate from 1.25% to 1.75% - a rise of 0.5 percentage points. It is the sixth time in a row that the BoE has hiked interest rates - and marks the largest increase in 27 years.
It also takes UK rates to the highest level since the end of 2008.
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