Household energy bills could reach more than £3,300 this winter, according to the latest forecasts from Cornwall Insight.
It’s estimated that the typical domestic customer will pay around £3,244 a year from October, and then £3,363 a year from January. At the moment, the typical household energy bill is around £2,000 a year.
Soaring wholesale gas costs are estimated to have contributed around £1,200 to household gas bills, an increase of almost 500% from before the energy crisis. This has had a knock-on effect on the power market, driving up electricity costs by more than £700 a year, an almost 400% increase.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said:
There is always some hope that the market will stabilise and retreat in time for the setting of the January [price] cap.
However, with the announcement of the October cap only a month away, the high wholesale prices are already being baked into the figure, with little hope of relief from the predicted high energy bills.