London Daily

Focus on the big picture.

Energy price cap set to remain more than £1,000 higher than pre-pandemic average

Energy price cap set to remain more than £1,000 higher than pre-pandemic average

A report warns a "new normal" level for bills is looming, at around the £2,000 level for the average household, though the worst should hopefully be over after a year of record wholesale prices.
The energy price cap is set to remain more than £1,000 higher than the average bill before the COVID pandemic, according to a closely-watched forecast.

Ahead of the industry regulator's determination on the price cap level due next week, energy research specialist Cornwall Insight said it saw the cap for a typical household at the equivalent of £2,053 per year from July-September.

That was down from the £3,280 level set by Ofgem for March-June and reflected continuing falls in wholesale energy costs, particularly for gas, over the year to date which accelerated as winter temperatures gave way.

The price cap does not currently apply due to help for energy bills from the government.

However, the Energy Price Guarantee (EPG), which limits a typical household's energy bill to £2,500 equivalent per year, concludes at the end of June.

Household bills will revert to the price cap from then.

The Cornwall Insight modelling shows a decrease of £1,227 from the April cap level but experts say the outlook for prices remains clouded by the effects of the war in Ukraine and domestic energy security concerns across Europe.

"Despite the cap falling from the sky-high prices of the past two years, the figure remains over £1,000 per year more than the price cap levels seen prior to the pandemic", the report said.

"We do not currently expect bills to return to pre-2020 levels before the end of the decade at the earliest.

"However, we hope to see the reappearance of more competitive fixed-rate energy tariffs as prices begin to stabilise, providing consumers with additional options to manage their energy costs.

"Prices remain subject to wholesale energy market volatility, and our reliance on energy imports (during the winter months) means geopolitical incidents could still have a significant impact on energy prices."

Current modelling suggests the cap from October would rise but only by a token amount compared to the bill shocks of the past year.

Energy costs have been the single biggest headache for the global economy since Russia's invasion of Ukraine last year exacerbated existing upwards pressure on global oil and gas prices.

They have fed their way down supply chains to drive up wider manufacturing and transport costs, leaving businesses and households at the mercy of rising bills across the board.

Dr Craig Lowrey, principal consultant at Cornwall Insight said of the expected energy bills ahead: "Under these predictions, an average consumer would see bills drop by around £450 compared to the existing levels of the EPG, with bills currently predicted to stay relatively stable over the next nine months.

"As many people continue to suffer from the cost-of-living crisis, this will hopefully bring some cautious optimism that the era of exceptionally high energy bills is behind us."
Newsletter

Related Articles

0:00
0:00
Close
South Korea's Brief Declaration of Martial Law
Unidentified Drones Spotted Over UK Airbases
Israel Offers $5 Million for Each Gaza Hostage Freed
"We Need A British Trump"- Former Prime Minister Elizabeth Truss
Make Orwell fiction again
CIA Official Arrested for Leaking Intelligence on Israel-Iran Conflict
Special counsel Jack Smith asks the court to dismiss his appeal regarding Trump in the Mar-a-Lago classified documents case.
BORIS: UK May Deploy Troops If Trump Cuts Support to Ukraine
Trump Administration Taking Shape: No Invitations Issued to Nikki Haley or Mike Pompeo
Iranian Man Charged in Plot to Assassinate Donald Trump
£3 Billion of British Taxpayer Money Spent by UK Government on Hotel Costs for Migrants
Unlike the shock and profound sadness at 10 Downing Street, British citizens assembled for an impressive rally backing the elected President of the United States, Donald Trump.
Elon Musk Predicts Justin Trudeau's Electoral Defeat
Here's why: Scott Presley convinced swing voters in Pennsylvania with a clear and direct question.
Royal Estates Earning Millions from Public Services and Charities
Siemens Acquires Altair Engineering in $10.6 Billion Deal
The man who got hit by a bus and immediately went back to the pub is strong! Beer is very important.
Donald Trump files $10 billion lawsuit against CBS News, accusing them of 'deceptively doctoring' Kamala Harris' '60 Minutes' interview
Formal Address for Meghan Markle at Invictus Games
Understanding the US Electoral College System
Apple Launches AI Features on Select iPhones
JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
King Charles to Continue Global Tours Despite Cancer Diagnosis
Venice Extends Tourist Entry Fee Program to 2025
Tommy Robinson Charged Under Terrorism Act for Phone Offence
Plans to Increase Employers' National Insurance Announced
Washington Post Editor-at-Large Robert Kagan has RESIGNED after owner Jeff Bezos BARRED the endorsement of Kamala Harris.
Massive Theft of Artisan Cheddar from Neal’s Yard Dairy
US Man Charged with Murder of Co-Worker over Breaks
Carbon Monoxide Incident Claims Lives at UK Care Home
Birmingham Airport Evacuated Due to Suspicious Vehicle
Former US President Barack Obama raps the lyrics to Eminem's ‘Lose Yourself’ after the rapper introduces him at a Kamala Harris rally in Detroit
KYIV URGES NORTH KOREAN TROOPS IN UKRAINE TO SURRENDER
Ofcom Identifies Link Between Social Media Posts and UK Unrest
Russian Boxer Receives Lifetime Ban for Illegal Move in Boxing Debut
Biden Labels Trump a Threat to Democracy
McDonald's Linked to E. coli Outbreak Leading to One Death
Teacher Enoch Burke arrested at Wilson’s Hospital School in Ireland after refusing to endorse and affirm transgender ideology.
FBI Investigates Leak of US Intelligence on Israeli Strike Plans
Israeli Airstrike Targets Hezbollah's Financial Resources
China’s Baidu is revolutionizing transportation with its robotaxi service
Angela Rayner Secures Permanent Seat on UK National Security Council
Russian Ambassador Claims UK's Proxy War in Ukraine
Doctor Advocates for Assisted Dying Law Reform
Ruth Davis Appointed as UK’s First Nature Envoy
Pressure Mounts on Starmer to Discuss Reparations at Commonwealth Summit
James Cleverly’s Costly In-Flight Catering for Government Trips
AI Regulation Takes Center Stage in 2024 US Presidential Campaign
NASA Study Explores Potential Microbial Life Beneath Mars' Ice
Cats: The Liquid-Like Pets
×