You are here: Home - Household Bills - News -

Average energy bills to hit £3,363 in the New Year

Written by:
Customers are set to pay £3,363 for their energy in Q1 2023, revised forecasts reveal.

The energy price cap – a limit on the unit rate and standing charge for default tariffs – has been revised upwards from the predictions set just two weeks ago.

New forecasts from Cornwall Insight have seen the energy price cap for Q1 2023 rise to £3,363 a year for average gas and electricity billpayers on standard variable tariffs.

This is up “significantly” from the £3,003 figure released just two weeks ago.

And predictions for the Q4 2022 period have also seen a steep increase, and now sits at £3,244 a year, up from £2,980.

Cornwall Insight said the ongoing uncertainty of Russian gas flows into continental Europe, as well as concerns surrounding Norwegian gas worker strikes, have led to increased volatility as wholesale energy prices rise, which will “ultimately trickle down to consumers”.

The energy consultancy said that while there is the potential for the energy price cap for Q1 2023 to fall if the wholesale market retreats, a significant decrease is unlikely.

It comes as the energy regulator – Ofgem – is set to announce the price cap next month for bills from October.

‘Prospect of a very expensive winter’

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “As the energy market continues to grapple with global political and economic uncertainty, the corresponding high wholesale prices, and the UK’s continued reliance on energy imports has once again seen predictions for the domestic consumer default tariff cap rise to what are even more unaffordable levels.

“There is always some hope that the market will stabilise and retreat in time for the setting of the January cap. However, with the announcement of the October cap only a month away, the high wholesale prices are already being “baked in” to the figure, with little hope of relief from the predicted high energy bills.

“Ofgem are continually reviewing the cap and there are a raft of consultations and potential reforms which could impact these forecasts. However, as it stands, energy consumers are facing the prospect of a very expensive winter.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week