Cornwall Insight has forecast that the price cap for January will rise to £1,736 a year, based on an average dual-fuel bill. Ofgem is set to announce the latest caprise on or around November 25, a crucial time for the country as it enters the winter season.
With this rise, households are under pressure, and some were hopeful that energy bill prices will become manageable at the start of next year. This is a 1% rise from the previous energy price cap announcement which saw a total cap of £1,717 for typical energy consumers.
What has Cornwall Insight Predicted for the Energy Price Cap?
In September, Cornwall predicted that the cap would decrease as the new year rolls in but recent forecasts say otherwise. The long-running cost of living crisis has hit vulnerable families and households the most, making these rises a threat to their finances. When the cold months roll in, living becomes even harder.
Ofgem put the price cap in place every quarter and the maximum amount that suppliers can charge their customers for each unit of gas and electricity. They also estimate that unit charges will be:
24.83p (kWh) for electricity.
6.33p (kWh) for gas.
Average UK households will be faced with the total price cap each year, but in reality, families are likely to pay more or less depending on their usage habits. However, it has also been predicted that in April next year and again in October, there will be a slight drop in the cap but it is urged people will need to get accustomed to these high prices.
The principal consultant at Cornwall Insight, Craig Lowrey, has stated that:
Supply concerns have kept the market as volatile as earlier in the year, and additional charges have remained relatively stable, so prices have stayed flat.”
He further explained that:
The news that prices will not drop from the rises in the autumn will be disappointing to many as we move into the colder months.”
The consultancy uses a nearly identical method of calculation to Ofgem that determines the prediction for these price caps. They have claimed that several factors in volatile wholesale markets had sustained prices and include:
Supply concerns due to geopolitical issues
Norwegian gas infrastructure maintenance
Weather disruptions
It has been stressed that the biggest method of reducing our dependence on fraught global energy markets is to ensure the UK has a strong renewable energy infrastructure.
What Help is Available This Winter?
Building a reliable energy infrastructure starts with the ones who need it most. Particularly vulnerable families and households who are suffering month to month with astronomical energy bills and those still living in a cold home.
Luckily, there are government-backed, free home energy upgrades that could lessen the blow of these problems and contribute to the building of this much-needed renewable energy infrastructure.
Free energy upgrades for your homes include:
Air Source Heat Pumps
Solar Panels
Insulation
With Energy Advice Helpline, you can quickly check your eligibility for these upgrades with the simple click of a button. Click below to start now:
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