The energy price cap could reach nearly £ 3,000 in the UK in early October, with the planned increase likely to be more than £ 1,000, according to a new forecast.
It is expected to rise to £ 2,980.63 for the next period, which will run between October and December, after another jump in wholesale demand last week.
It is now £ 1,971, the highest value since the introduction of the ceiling, surpassing the previous peak by 54%. Previous estimates put the autumn price on the ceiling at £ 2,800.
Research firm Cornwall Insight said it could then rise to £ 3003 for the January-March period, based on the latest figures.
Energy prices have risen in the last few months after high demand, as economies reopened after blocking during the Covid-19 pandemic.
Russia’s invasion of Ukraine in late February then added to the problems as countries stopped buying gas from the country for fears it would help fund its military efforts.
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The government has introduced a multi-billion pound support package, including a £ 400 rebate for each household in the country and a £ 150 rebate on municipal tax bills. Vulnerable people are entitled to additional financial assistance.
The crisis has reduced the number of energy suppliers in the market to just over 20. More than 30 companies have gone bankrupt since January 2021, including Bulb Energy, Together Energy and Avro Energy, affecting 4.5 million customers. No supplier is able to offer a price above the ceiling level, and competition between companies is almost non-existent.
Energy regulator Ofgem announced last week that it would introduce new measures to stop companies from going bankrupt and protecting customers’ money.
Prices were up to £ 1,042 in the summer of 2020, the cheapest energy since the policy went into effect in 2019. It was £ 1,277 before rising by almost £ 700 in April.
Cornwall Insight predicts prices will peak in January, before falling to £ 2,758 in April and £ 2,866 in July – levels that are still higher than what customers are paying now.
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