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Families pay £1000 more on energy bills as price cap ‘nearly doubled’

Cash-strapped families will have to pay an extra £1,000 a year on their energy bills next October, according to experts.

The dire prediction came because energy price limit – currently at £1,277/year per household – is likely to be doubled next year to keep up with record market prices and supplier error costs.

Citizens Advice says many struggling families are faced with a choice between'heating or eating'

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Citizens Advice says many struggling families are faced with a choice between ‘heating or eating’Credit: Alamy

By April next year, the default tax rate cap could rise to £1,865 – nearly 50% higher than previous estimates, according to consulting firm Cornwall Insight.

Next October, households could end up paying a whopping £2,240 a year for their electricity and gas, the consulting firm calculates.

This is almost £1,000 more than it is today, magnifying the growing cost of living crisis affecting British families.

According to charity National Energy Action, around four million UK households have fallen into fuel poverty, unable to heat their homes to the temperatures needed to stay warm and healthy. strong.

Citizens Advice says many struggling families are faced with a choice between “heating or eating”.

The cost of living is soaring, with inflation reaching more than 5% as prices for a wide range of goods from used cars to footwear rise.

And energy bills could add to that by soaring even higher than bleak forecasts, Cornwall Insight warned yesterday.

With wholesale prices having surged beyond record levels seen in early October due to concerns over continued gas and electricity supply, geopolitical pressures affect European gas markets and Colder weather associated with winter, our forecast reflects these common conditions.

“Furthermore, our current forecast for the Winter 2022-23 default tax rate cap is around £2,240 per year, although we note that this figure could face variation. significantly before it is officially announced in August 2022.”

Citizens Advice is one of several that has called for energy market reform. Regulator Ofgem has said it is reviewing the structure of the energy price cap originally put in place to protect consumers.

Martin Lewis reveals how households will pay 40% more on higher energy bills next year

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https://www.thesun.co.uk/money/17099342/energy-bills-increase-price-cap/ Families pay £1000 more on energy bills as price cap ‘nearly doubled’

Bobby Allyn

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