Annual energy bills are expected to top £5,000 next year, with experts at energy consultancy Auxilione warning that the energy price cap could reach around £4,400 by January. Auxilione also predicts that the regulator Ofgem could raise the cap further to £5,038 per year in April 2023.
The current energy price cap stands at £1,971, but analysts at Cornwall Insight are currently forecasting a 70% rise in October, bringing the cap to £3,359 per year.
Energy regulator Ofgem said: “The wholesale market continues to move extremely rapidly so any forecast for next year is not robust at all at this stage and will therefore be of very limited value, particularly for consumers who must always be the main priority.
“We cannot prevent others from making predictions, but we ask that extreme caution be applied to any predictions regarding the price cap in January or beyond.”
Scottish Prime Minister Nicholas Sturgeon called for the price cap increase to be removed completely.
She said last week: ‘We will spare no effort and be ready to act, whether through legislation or other emergency measures if that is what is needed.
“But what has to happen is that the next energy price hike has to be undone.
“There should be serious work with the energy companies to tax windfall profits and restructure the factors that drive the cost of energy at the moment, VAT on fuel should be removed and there should be a significant increase through to increased borrowing if necessary to get money to those who need it most.
In a poll that ran from 6 p.m. on Friday August 12 to 3 p.m. on Thursday August 18, Express.co.uk asked readers: “Should the energy price cap hike be scrapped, as Nicola Sturgeon argued? »
Overall 1016 people voted with the vast majority, 87% (887 people) saying ‘yes’ it should be removed.
A further 10% (106 people) said ‘no’ it shouldn’t, while 2% (23 people) said they didn’t know.
Dozens of comments were left under the accompanying article as readers discussed the energy price cap.
Former Labor Prime Minister Gordon Brown called on the Conservative Party to act and abandon the price cap hike.
In an opinion piece for The Guardian, he wrote: “Time and tide wait for no one. Neither do crises.
“They don’t take holidays and politely hang fires – certainly not to suit the convenience of a departing PM and the whims of two potential successors.”
Ofgem is expected to announce the next price cap on August 26, which will be reviewed every three months.
In response to previous calls for the price cap to be removed, a spokesperson for the Department for Business, Energy and Industrial Strategy said: “More than 22 million households are currently protected by the price cap.
“If the cap was not in place, energy companies could charge consumers even higher prices, on top of the costs of buying gas and wholesale electricity.”
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