Price cap predicted to rise: Charity warns households ‘will go into winter with less support and higher energy bills’

On Monday energy sector consultancy Cornwall Insight has predicted that the October price cap level will rise for a ‘typical’ household, ahead of winter when energy use is higher. Cornwall Insight previously estimated (https://www.cornwall-insight.com/predictions-and-insights-into-the-default-tariff-cap/) that, based on ‘typical’ energy use, average yearly energy bills will increase by approximately £150 per year.

Ofgem will release the actual price cap level on Friday (23 August).

This increase comes as hundreds of thousands of pensioners now miss out on the Winter Fuel Payment, after changes mean only those on means-tested benefits can claim. It also comes as energy debt is at record levels, with customers owing over £3 billion.

National Energy Action Chief Executive Adam Scorer says, ‘If these alarming estimates are confirmed by Ofgem on Friday, energy bills and energy debt will stretch household finances beyond breaking point.

‘Households will go into winter with less support and higher prices. This can still be avoided if the UK government and Ofgem act urgently to directly reduce customer debt levels and energy prices for those most in need.’

National Energy Action will provide a quote and our figures showing the number of UK households in fuel poverty on Thursday evening (22 August), under embargo until Ofgem confirms the price cap on Friday.