A further £629 could be added to bills this October if the cost of living soars, according to an energy consultancy
Energy bills could rise by a further £600 in six months if temperatures drop, families have been warned.
A further £629 could be added to bills this October if the cost of living soars, according to an energy consultancy.
Cornwall Insights believes families could see their bills skyrocket again, meaning they would have doubled in just over a year.
The invasion of Ukraine is said to have led to volatile wholesale prices four months before the winter price cap was announced.
The anticipated hike would come as the weather turned colder again. It has led to more calls for the government to support families struggling with the cost of living, reports say Hull Live.
If the prediction is correct, families would be paying almost £2,600 a year for energy in the winter of 2022. These would then drop to £2,040 in the summer of 2023.
dr Craig Lowrey, Principal Adviser at Cornwall Insight said: “The price cap introduced today is a significant increase on 2021. If Cornwall Insight’s predictions for the 2022-23 winter cap come true, households will be braced for another significant hit to their finances in October.
While Government support worth £350 will offer consumers some respite this time around – albeit not far enough – with the cap almost guaranteed to rise again, the Government will need to assess whether to scale up the scale and scope of that support afterwards will expand at least October.”
Bill Bullen, the boss of Utilita, warned that the elderly and children would be at serious risk next winter because of a lack of heating.
Speaking to the BBC, he said: “We will see an extra £500 or £600 added to the bills in October and honestly the Chancellor needs to fund that fully for low income households.”
The warnings came as the amount utilities can charge today (April 1) has skyrocketed. It came on the day that council tax hikes came in, along with water bills and car emissions taxes also rising.
However, to partially soften the blow, the minimum wage has been raised and the government has taken measures – such as a tax break for the municipality – to bring costs down. But the Bank of England had previously said families are facing the biggest increase in the cost of living since the 1970s.
The rise in energy costs was the largest since Ofgem’s price cap was raised.
The cap set every six months for England. Wales and Scotland is designed to protect household consumers from volatility in wholesale energy prices.
https://www.mirror.co.uk/news/uk-news/energy-bills-could-soar-another-26616529 Energy bills could rise by a further £600 in six months if temperatures drop