Energy bills across Britain might increase by 9% this winter, reaching an average of £1,714 a year for the typical household‘s gas and electricity.
Consultancy Cornwall Insight has released its final forecast for the energy price cap for October 2024.
The energy price cap sets a maximum limit on the rates and standing charges that suppliers can charge for standard variable tariffs.
The forecast suggests the cap will be set at £1,714 per year for a typical dual fuel household. This represents a 9% increase from the current cap of £1,568 per year.
Wholesale gas and electricity prices have increased in recent months, recovering from their lowest point in February.
This rise, particularly since early August, is the main factor behind the expected increase in bills.
The official announcement of the October price cap will be made by Ofgem on 23rd August.
Looking ahead, Cornwall Insight predicts a modest increase in the price cap for January 2025.
However, ongoing tensions in the Russia-Ukraine conflict could cause prices to rise further in the new year.
