Domestic energy prices have risen this week. It’s the second increase in Ofgem’s price cap this winter and means tenants and others paying by direct debit and using a typical amount of gas and electricity will pay £1,738 a year.
That’s £21 a year more than under the previous cap, and takes bills to some 50% higher than pre-Covid levels.
Respected energy prices forecast service Cornwall Insight is warning there’s worse to come.
The April cap, coming into effect in four months time, is now expected to rise to £1,785 a year for a typical dual fuel consumer.
On top of the wholesale market developments, Ofgem are set to make changes that could impact consumer bills.
A spokesperson for Cornwall Insight says: “The news of a rise in our forecast will be disappointing to households’ who will no doubt have been hoping for relief from recent cap rises. However, the turbulence in wholesale markets – a level of volatility we haven’t seen for months – reminds us to remain cautious of predictions, which could very well increase or decrease several times before the April cap is set.
“With a Trump presidency on the horizon, and an uncertain geopolitical situation in the Ukraine and the Middle East, wholesale market volatility looks set to remain.
“To add to the wholesale turbulence, other cost measures being decided upon by Ofgem and the government have the potential to move the cap up or down. As we look ahead, consumers must brace for continued fluctuations.
“Ultimately, the security of energy supply, and Ofgem’s evolving policies will shape the trajectory of bills as we move into 2025 and beyond. It’s crucial for policymakers and industry stakeholders to work together to ensure fair and sustainable energy pricing for households.”