Forecasts predict when energy bills will go back down again - but experts warn 'era of cheap energy is over'
27.08.2022 - 01:25
/ manchestereveningnews.co.uk
The energy price cap will increase by around 80 per cent from the start of October, meaning the average household will pay £3,549 per year for gas and electricity. Gloomy forecasts predict that the cost of energy will continue to soar in the coming months leaving Brits in a bleak position.
The latest analysis from Auxilione suggests the energy price cap could top £7,200 by next spring - more than three and a half times the figure it currently stands at. However, experts believe the cap will then fall by the summer and again next autumn.
The energy price cap was put in place as a way of regulating the amount that 24 million households pay for their gas and electricity. It was introduced in January 2019 to ensure that households would not be ripped off by their energy suppliers.
READ MORE: Annual energy bills to top £7,000 by spring next year, forecast predicts after latest price cap announcement
The price cap, set by energy regulator Ofgem, determines the maximum amount that a household on a default tariff will have to pay for every unit of gas and electricity they use. It used to be reviewed once every six months, but is now set four times a year - in January, April, July and October.
While experts expect the cap to rise significantly in January and again in April, it is expected to fall back again in July and October next year. The exact amounts will be announced nearer the time, but forecasts can give us a good idea of what the changes may be.
Consultants at Cornwall Insight and energy consultancy Auxilione have both given close to accurate predictions on the latest change. Auxilione’s final forecast was just £27 above October's £3,549 cap announced by Ofgem today, while Cornwall Insight’s prediction was only £5