Energy bills to hit £3,554 in final October price cap rise estimate
A typical UK household will be paying £3,554 per year for their energy bills from October, Cornwall Insight has forecast.
The energy consultancy said households will face an 80% rise in bills going into the winter period when energy use soars.
It is the final forecast from the consultancy before regulator Ofgem announces the new energy price cap on Friday, which will come into effect on 1 October and last until the end of the year.
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But things will get worse after that, according to the prediction. The forecast is for January's cap is £4,649.72 per year for the average household — up from last week's forecast of £4,266 for January.
April's cap is predicted to hit £5,341.08 per year — compared to the £4,427 forecast last week.
Therefore, between October and April — which includes the coldest months of the year — the average household will pay an equivalent £4,102 per year for their gas and electricity.
The energy price cap, which is set by the regulator Ofgem, limits the maximum amount suppliers can charge customers for each unit of gas and electricity.
“While the energy price cap rise in April was already an unprecedent increase in domestic consumer energy bills, our final predictions for October are truly concerning,” Cornwall Insight said.
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“With the cost of living spiralling and households looking at an energy bill rise of over £1,500 equivalent per year, it is difficult to see how many will cope with the coming winter.”
The news come as UK inflation is on course to breach 18% at the start of 2023 due to skyrocketing energy bills, according to new forecasts by economists at Citi.
Denmark’s Orsted, nuclear company Newcleo, and German giant RWE are all meeting the UK chancellor this week, and will be asked what they can do to help consumers with rising energy prices.
The main factor in the increases is the wholesale price for natural gas, which has gone through the roof since Russia invaded Ukraine late in February.
