UK energy bills predicted to rise by £194

Asset manager Columbia Threadneedle Investments estimates that UK families’ energy bills could increase by £194 a year with the energy price cap predicted to rise from £1,568 to £1,762 in October.

This projection, reported by the Sunday Telegraph, is based on the recent increase in energy future contracts, influenced by the ongoing war in Ukraine.

Steven Bell, Columbia’s chief economist, explained that the potential rise in energy costs is due to concerns over the security of Ukraine’s gas storage and transhipment facilities, which are significant for Europe.

Last month, Cornwall Insight revised its forecast for the default tariff cap for October-December 2024, estimating that a typical dual fuel consumer would encounter an annual price cap of £1,723.

This forecast suggests a 10% increase compared to the £1,568 cap that became effective on 1st July.