Home Business News Energy price cap set to rise this winter in a major blow for households

Energy price cap set to rise this winter in a major blow for households

22nd Aug 24 3:42 pm

Experts at the energy consultants Cornwall Insights are warning that households will face higher energy prices this winter.

They are predicting that on Friday Ofgem will announce that on 1 October households energy prices will rise from £1,568 to £1,714 a year.

Cornwall Insights are expecting another “modest” increase in January and there could be further increases early in 2025 amid Russia’s war in Ukraine.

Craig Lowrey, principal consultant at Cornwall Insight, warned that Ofgem’s announcement will not be the news “households want to hear when moving into the colder months.”

“Following two consecutive falls in the cap, I’m sure many hoped we were on a steady path back to pre-crisis prices,” he said.

“However, the lingering impact of the energy crisis has left us with a market that’s still highly volatile and quick to react to any bad news on the supply front.”

Jess Ralston, head of the Energy and Climate Intelligence Unit said, “A lack of progress on energy efficiency and heat pumps means that our reliance on gas hasn’t fallen much in recent years, despite the volatility in the international markets forcing bills to skyrocket.

“With the removal of the winter fuel payment for some pensioners at the same time as bills going up, it’s likely that some will struggle and it remains to be seen if the Government will bring in measures to support those worst hit by the removal of winter fuel payment.”

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