Energy bills forecast to top £4,200 in fresh blow to UK households

The energy consultancy Cornwall Insight warned that UK consumers will face unprecedented energy-cost increases starting in October. A typical household bill is expected to reach 34,000 by the beginning of next year.

Cornwall Insight raised its forecast for the average bill from October by £223 to £3,582 a year and by more than £650 to £4,266 from January 2023.

It was due to higher wholesale prices as well as a change of methodology by regulator Ofgem to calculate the energy gap. This is facing backlash from its decision to implement quarterly price cap reviews.

The consultancy predicted that energy bills from Centrica’s British Gas, and other energy companies, could rise to an alarming £4,427 by the end of the second quarter of 2023. However, they will decline in the second half of next year.

Cornwall Insight stated that “These forecasts for the quarter January-March 2023 underline the importance of support for households who will have difficulty paying their energy bills this winter.”

“It is crucial that the government uses our predictions to encourage a review of the consumer support package. The £400 did not make an impact on our previous forecasts, but it isn’t enough now.

It indicated that it was time for a complete replacement of the price cap.

“Although it may not be controlling consumer prices and is causing damage to suppliers’ business models, it should be questioned if it is fit to purpose, especially in these unprecedented energy market conditions.”

Only half of the cost-of-living assistance covers the rise in bills for poor households

According to a new analysis, the amount of government support to address the cost-of-living crisis is less than half of the increase in prices that households will face this year.

According to the Joseph Rowntree Foundation, the cost of living for the poorest families will increase by £2,500 compared to £1,200.

As it warned that rising prices will lead to “unnecessary suffering” for millions, the charity called on the Government to double its support for the poorest families. Katie Schmuecker at the Joseph Rowntree Foundation said

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.