Energy prices forecast to rise by 9% in October

Nancy M

19/08/2024

Domestic energy prices are expected to rise in the run-up to winter, according to consultancy Cornwall Insight.
The forecaster, which is widely regarded for its accurate predictions, said a household using a typical amount of gas and electricity would pay £1,714 a year from October.

That would be a £146 a year rise compared with a current typical annual bill – the lowest for two years – of £1,568. Energy regulator Ofgem will announce the next official quarterly price cap on Friday, with charities concerned about the prospect of prices rising again.

Although the price cap is changed every three months, it is illustrated by Ofgem in terms of an annual bill for a household using a typical amount of gas and electricity. People in larger properties will tend to pay more overall owing to higher energy usage, and those in smaller properties will pay less.
That is because the cap limits the maximum price that can be charged for each unit of gas and electricity, rather than the total bill. It affects 28 million households in England, Wales and Scotland. The sector is regulated separately in Northern Ireland.

Cornwall Insight said prices paid by households, although protected to some degree by the price cap, were affected by volatility in the fragile global energy market. Wholesale costs, paid by suppliers, had risen by about 20% in the last few months, it said. These are reflected in consumer bills, accounting for about half of what customers pay.

Source: BBC