Energy price cap could pass £6,000 for first time in new forecast
Gas and electricity prices could soar by more than threefold from an already record level, according to a worrying new forecast.
Experts have warned energy prices could spike at as much as £6,000 per year for the average household from next April.
The cost-of-living crisis is only set to get worse between now and next summer, as consultancy Auxilione predicted that the price cap on bills will gradually rise by more than £4,000 in the next eight months.
They said that the cap is expected to reach £3,576 in October, rising to £4,799 in January, and finally hitting £6,089 in April.
The new forecast is an increase of £96 in January and £233 in April compared to the last one.
The cap is currently at £1,971 for the average household. Households who consume more than the average pay more for their energy bills.
The forecasts, based on Friday’s gas price, are another major blow for families around Britain and will put extra pressure on the Government to act.
Around 45 million people are forecast to be thrown into energy poverty this winter.
Millions of homes are likely to be kept very cold as people try to save what little they can on their energy bills.
The rising cap is due to the runaway price of gas on European markets. This was set off about a year ago as demand for gas soared when economies emerged from Covid-19 lockdowns.
But then came the war in Ukraine. Since then Russian gas supplies into Europe have been severely slashed.
It has caused the gas price to spike to levels never seen before. The energy price cap, which is set by Ofgem, only limits the profits that energy suppliers can take.
It does not protect customers from runaway wholesale energy prices.
The consultants forecast that bills will slowly drop in the second half of next year, to £5,486 in July and £5,160 in October 2023.
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