Consultant predicting more energy price misery

Households across have been warned they could face an annual energy bill in excess of £3,600 this winter.

Energy consultant Cornwall Insight said a regular gas and electricity bill in England, Wales and Scotland could reach £3,615 in the New Year – hundreds of pounds more than previous predictions.

In May, the Government announced an energy costs support package - worth £400 per household - in response to predictions that bills would rise to £2,800 for the average household in October.

Last month, Cornwall Insight predicted that annual energy bills would typically rise to £3,244 from October and £3,363 from January, but circumstances have changed significantly since then.

The company say that bills are now likely to rise to £3,358 from October and £3,615 from January.

Cornwall Insight's principal consultant, Craig Lowrey, said surging gas prices and concerns about Russian supply had prompted the increase. He added: "However, while the rise in forecasts for October and January is a pressing concern, it is not only the level - but the duration - of the rises that makes these new forecasts so devastating.

"Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024."

On Friday, Richard Neudegg, director of regulation at Uswitch, called for the £400 in support to be increased to at least £600 and charity National Energy Action last month predicted that, should the average bill reach £3,250 per year, 8.2million UK households will be in fuel poverty.