Energy bills could soar to £367 per month – what this could mean for you
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The energy price cap is set to rise by around £1,300 to more than £3,200 this October, and it could rise again in January, to more than £3,300. Invest utilities analyst Martin Young has said that this could mean families paying out the equivalent of £367 a month during the winter, reports The Mirror.
The market price of energy it was at the time of the last price cap estimate, Ofgem bosses have said.
Chief executive Jonathan Brearley spoke to MPs on Monday, refusing to say if the cap could reach a figure of over £3,200
However, he did confirm that energy prices appear higher than when Ofgem made its estimate.
He said: “It’s clear given the pricing dynamics we’re seeing, given the ongoing impact of the Russian invasion of Ukraine, that there is positive pricing pressure there.
“As in prices are looking higher than they did when we made that estimate.
“But we don’t give ongoing sort of commentary until we make our formal announcement.”
Some 76 percent of gas used by the average UK household over the course of a year is consumed over the winter.
Mr Young called the £367 a month prospect “a truly devastating level for many”.
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He said: “We have spoken in the past about ‘heat or eat’.
“The situation is getting worse, not better.”
Former Chancellor Rishi Sunak set out a package of measures to help struggling Britons foot their bills in May.
The support includes £400 for most customers later this year, with more for low income and pensioner households.
From tomorrow, people on Universal Credit will receive the first instalment of a £650 one-off payment to help people on low incomes.
The second instalment will be paid in the autumn.
Ofgem increased the price cap from April in a bid to help energy suppliers recover soaring wholesale costs.
One headteacher was shocked to find out his school’s energy bill is set to soar by a staggering £95,000.
Niall Smith, 51, said the electricity at Southborough High School, Surbiton, in Greater London shot up to £55,000 this academic year.
People on standard and other “default” tariffs saw their bills increase from an average £1,277 to £1,977 a year.
Wholesale prices for gas to be delivered this winter are currently at a record high for this time of the year.
Inflation has reached more than nine percent with analysts predicting it could reach 11 percent by the end of the year.
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