As the cost of living continues to soar across the country, the end is far from over according to a new forecast released by experts.
Scots could see energy bills of around £500 for January alone, with BFY Group, a utilities consultancy, expecting the cap on bills to hit £3,850 between January and April next year.
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The gloomy forecast is hundreds of pounds more than prior predictions and comes after the Kremlin further strangled the flow of gas to Europe.
If the expected prices come into action, enormous pressure will be placed on already squeezed households, reports the Record.
“Following further rises in wholesale prices as flows of gas from Russia to Europe via the Nord Stream 1 pipeline drop to 20 of capacity, we now forecast the Ofgem price cap to rise to £3,420 in the fourth quarter of 2022 and £3,850 in the first quarter of 2023,” Dr Gemma Berwick, a senior consultant at BFY Group said.
“This will make the average household bill over £500 for January alone.”
BFY now believes Ofgem will have to set the earlier October price cap change at £3,420, with another increase expected when the cap is reviewed in January.
The cap used to be updated twice a year, but recent changes mean that there will be a new price cap every three months going forward. It is based on the average cost of energy in the previous months.
Although it is still early days for the January prediction, analysts already have most of the data they need to accurately forecast October’s rise.
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