Energy bills are expected to top £5,300 annually in April next year, a massive increase on previous predictions.
The dire news comes from energy consultancy Cornwall Insight in its final forecast before Ofgem confirms October’s price cap this Friday.
Cornwall Insight’s forecast for October this year has fallen very slightly from £3,583 for the average household, to £3,553.
The firm said that forecasts for this period had remained “largely steady” over recent weeks, but a 15% increase in wholesale energy prices last week has changed the outlook for next year.
The forecast is for January’s cap to be £4,649.72 per year for the average household – compared to last week’s forecast that it would reach £4,266 by this point.
And April’s cap is forecast to hit £5,341.08 per year, compared to last week’s forecast that it would reach £4,427.
While the price is expected to fall later in 2023, it will remain very high – a forecast of £4,767 in July and £4,807 in October.
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It is all a far cry from the £1,277 per year price cap seen in October 2021.
The main factor in the increases is the wholesale price for natural gas, which has gone through the roof since Russia invaded Ukraine late in February.
