Energy bills could DOUBLE again to £7,300 by April (1/2)
The energy price cap could rise above £7,000 next year, experts have warned for the first time, as Ofgem announced the highest cap on record.
The energy regulator said the price cap for the average household would rise by 80% to £3,549 for the three months starting in October.
But experts at energy consultancy Auxilione have warned the cap could even double from that record high by April next year, hitting £7,263.
The forecast is based on the current cost of buying energy in global markets and also forecasts bills reaching £5,405 in January.
Other Cornwall Insight consultants are a bit more optimistic. Their model expects the cap to only reach £5,387 in January and then £6,616 from April.
The two consultancies then expect bills to fall by £700-800 in July from the April cap.
It is the gloomiest prediction to date from the two teams, whose predictions for October’s price cap were close to Ofgem’s decision.
Auxilione’s final forecast was just £27 above the cap set, while Cornwall Insight’s forecast was £5 above.
The forecast is largely based on what gas prices are doing right now, so it’s subject to a lot of change between now and January, let alone before April.
“While there is still time before the January and April caps are set, the energy crisis shows no signs of abating,” said Dr Craig Lowrey, senior consultant at Cornwall Insight.