Market News
UK Households Get Fresh Warning of Energy Bills Topping £4,000 - BLOOMBERG
(Bloomberg) -- UK households received yet another warning that they should brace for energy bills to exceed £4,000 this winter as high gas prices threaten to exacerbate a cost-of-living crisis.
The default price cap is set to rise to £4,266 ($5,163) in the first quarter of 2023, according to analysis from Cornwall Insight Ltd. That will pile more pressure on consumers already struggling to pay their bills -- a key issue for whoever is the next prime minister.
The forecast confirms analysis last week that showed the price cap would breach the £4,000 pound mark for the first time. While energy costs should ease a bit next summer, the respite will be limited as analysts at Cornwall expect the price cap to remain above £3,700 throughout next year.
UK energy regulator Ofgem last week said the price cap will be adjusted quarterly instead of twice a year to better adapt to market volatility. The government is under pressure to help households more as a £400 support measure introduced earlier this year will now do little to help with soaring costs. That’s at a time when consumers are also grappling with high fuel and food bills.
“It is essential that the government use our predictions to spur on a review of the support package being offered to consumers,” said Craig Lowrey, principal consultant at Cornwall Insight.
