Energy consultancy warns of higher bills in October

04

April 2022
energy-bill-shock

Energy consultancy warns of higher bills in October

New data has shown that gas and electricity bills could continue to climb for UK customers, despite a significant hike coming into play just days ago.

This is according to energy consultancy Cornwall Insights, who have warned that we could be seeing a further £600 average annual increase when the price cap is adjusted in October. While a lot can change in four months, they believe higher bills are almost inevitable given the current market conditions.

Dr. Craig Lowrey, Principal Consultant at Cornwall Insight said: “The price cap being brought in today is a significant increase from 2021, if Cornwall Insight’s predictions for the Winter 2022-23 cap are realised, households will be set for yet another significant hit to their finances in October.

"While the government’s £350 worth of support will provide some respite to consumers this time around – all-be-it not far enough – with the cap almost guaranteed to rise again, the government will need to look at expanding the scale and scope of this support after October at the very least.”

Responding to the news, Utilita boss Bill Bullen similarly urged that further support for low-income households would be imperative.

"We are going to see an extra £500 or £600 added to bills in October, and frankly the chancellor's going to have to fund that entirely for low-income households," he told the BBC.

"He won't be able to afford to take this problem away for everybody... but for customers who can't respond to that price [increase], that's where the help needs to be targeted."

The news will be ill-timed for many households, as April 1st saw Ofgem increase the price cap by nearly £700 per year. It was a record-breaking hike, made in response to unprecedented wholesale energy costs. 

While energy bills are causing the biggest squeeze on finances, it is not the only factor. Brits are finding that they are paying more across the board, including in shops, at the pump, and for property rentals. All of this is contributing to the much-discussed cost of living crisis. 

Under pressure to respond to these concerns, Rishi Sunak recently announced a new set of fiscal policies as part of his ‘mini budget’. They included:

  • A higher National Insurance threshold 

  • Removal of fuel-duty 

  • Removal of VAT on materials to improve a household's sustainability. 

Sources