Home Business News Ofgem warns the energy price cap will rise above £4,000 in January which will bring misery for millions

Ofgem warns the energy price cap will rise above £4,000 in January which will bring misery for millions

by LLB Finance Reporter
9th Aug 22 10:09 am

Ofgem has issued a horror warning that the energy price cap will rise above £4,000 in January which will affect millions of households.

Analysis by the much respected Cornwall Insight have predicted that energy bills could well hit £4,266 a year in the first quarter of 2023.

Further analyses has revealed that in October energy bills are predicted to now rise £200 higher with the average household bill now likely to be £3,582.

Campaigners have slammed Ofgem’s latest announcement, with Simon Francis, the coordinator of the End Fuel Poverty Coalition, warning, “Ultimately, this decision will force more people into fuel poverty in the middle of winter, causing additional stress on the NHS and it may ultimately lead to increased levels of excess winter deaths this year.

“It is simply inhumane.”

Dr Craig Lowrey, Principal Consultant at Cornwall Insight said, “While our price cap forecasts have been steadily rising since the Summer 2022 cap was set in April, an increase of over £650 in the January predictions comes as a fresh shock.

“The cost-of-living crisis was already top of the news agenda as more and more people face fuel poverty, this will only compound the concerns.

“It is essential that the government use our predictions to spur on a review of the support package being offered to consumers.

“If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now.

“The Government must make introducing more support over the first two quarters of 2023 a number one priority.

“In the longer term, a social tariff or other support mechanisms to target support at the most vulnerable in society are options that we at Cornwall Insight have proposed previously.

“Right now, the current price cap is not working for consumers, suppliers, or the economy.”

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