Energy bills could spike to £6,000 next year, experts warn
20 August 2022, 13:35
Gas and electricity bills are set to soar by more than threefold from an already record level, affecting millions of struggling families.
With around 45 million people predicted to fall into fuel poverty this winter, consultancy Auxilione predicted that the price cap on bills will gradually rise by more than £4,000 in the next eight months.
They said that the cap is expected to reach £3,576 in October, rising to £4,799 in January, and finally hitting £6,089 in April.
The new forecast is an increase of £96 in January and £233 in April compared to the last one.
The cap is currently at £1,971 for the average household.
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Households who consume more than the average pay more for their energy bills.
The forecasts, based on Friday's gas price, are another major blow for families around Britain and will put extra pressure on the Government to act.
Millions of homes are likely to be kept very cold as people try to save what little they can on their energy bills.
The rising cap is due to the runaway price of gas on European markets.
This was set off about a year ago as demand for gas soared when economies emerged from Covid-19 lockdowns.
But then came the war in Ukraine. Since then Russian gas supplies into Europe have been severely slashed.
It has caused the gas price to spike to levels never seen before.
The energy price cap, which is set by Ofgem, only limits the profits that energy suppliers can take. It does not protect customers from runaway wholesale energy prices.
The consultants forecast that bills will slowly drop in the second half of next year, to £5,486 in July and £5,160 in October 2023.
