Household Energy bills forecast to hit over £4,200 a year pushing many into Poverty and Debt.

. . .

Energy bills for a typical household could hit £4,266 next year, consultancy Cornwall Insight has warned.

The higher estimate means the average household would be paying £355 a month, instead of £164 a month currently.

Cornwall cited regulator Ofgem's decision to change the price cap every three months instead of six and higher wholesale prices for its high forecast.

But Ofgem said no forecast for next year could be "robust" at this stage and had "limited value".

The latest price cap - the maximum amount suppliers can charge customers for average energy usage in England, Scotland and Wales for October - is due to be announced at the end of this month.

Cornwall expects this to rise to £3,582 a year, compared to the regulator's prediction of £2,800 a year.

Dr Craig Lowrey, principal consultant at Cornwall, said its price cap forecasts had been steadily rising but the big jump was "a fresh shock".

The energy bill warning comes as the government rejected calls for further help on energy bills until a new prime minister was in place.

The CBI business lobby group said it "made no sense to wait" for a new Conservative party leader.

Regulator Ofgem warned wholesale prices were moving so quickly that future forecasts were not reliable.

"We cannot stop others from making predictions, but we would ask that extreme caution is applied to any predictions for the price cap in January or beyond."

Earlier this month, the government announced how households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn, with the money paid in six instalments.

But Dr Lowrey called on the government to use the latest predictions of higher bills to review the support package.

"If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now.

"The government must make introducing more support over the first two quarters of 2023 a number-one priority."

Hannah Absalom, a PHD student in Birmingham, lives on £850 per month in a one-bed flat and has spent £80 already on thermal clothing and a heated blanket so she can avoid heating her home in winter.

"I'm doing everything I can but there's not enough support. I'll more than likely end up in debt, or eat into my buffer savings - saved for getting a job," she says.

Supermarket head office worker Stuart Lane, 47, who lives in Buckinghamshire with his wife and their three children, currently pays £100 a month for a fixed price deal. but that ends in September.

"When I looked at getting a new deal, the only fixed prices was pushing up to £420. We will be having to look at our outgoings," he says.

Sylvia Simpson, chief executive at debt help charity Money Buddies in Leeds, told the BBC there were limited options for helping people with soaring energy bills: "The tools that we used to have before, for example, for switching utility providers to get the best deal - that has gone now. There is no switching to get the best deal anymore.

"People are really, really struggling."

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Household Energy bills forecast to hit over £4,200 a year pushing many into Poverty and Debt.

Added to NewsRel and categorized in 1 month ago

Household Energy bills forecast to hit over £4,200 a year pushing many into Poverty and Debt.

. . .

Energy bills for a typical household could hit £4,266 next year, consultancy Cornwall Insight has warned.

The higher estimate means the average household would be paying £355 a month, instead of £164 a month currently.

Cornwall cited regulator Ofgem's decision to change the price cap every three months instead of six and higher wholesale prices for its high forecast.

But Ofgem said no forecast for next year could be "robust" at this stage and had "limited value".

The latest price cap - the maximum amount suppliers can charge customers for average energy usage in England, Scotland and Wales for October - is due to be announced at the end of this month.

Cornwall expects this to rise to £3,582 a year, compared to the regulator's prediction of £2,800 a year.

Dr Craig Lowrey, principal consultant at Cornwall, said its price cap forecasts had been steadily rising but the big jump was "a fresh shock".

The energy bill warning comes as the government rejected calls for further help on energy bills until a new prime minister was in place.

The CBI business lobby group said it "made no sense to wait" for a new Conservative party leader.

Regulator Ofgem warned wholesale prices were moving so quickly that future forecasts were not reliable.

"We cannot stop others from making predictions, but we would ask that extreme caution is applied to any predictions for the price cap in January or beyond."

Earlier this month, the government announced how households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn, with the money paid in six instalments.

But Dr Lowrey called on the government to use the latest predictions of higher bills to review the support package.

"If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now.

"The government must make introducing more support over the first two quarters of 2023 a number-one priority."

Hannah Absalom, a PHD student in Birmingham, lives on £850 per month in a one-bed flat and has spent £80 already on thermal clothing and a heated blanket so she can avoid heating her home in winter.

"I'm doing everything I can but there's not enough support. I'll more than likely end up in debt, or eat into my buffer savings - saved for getting a job," she says.

Supermarket head office worker Stuart Lane, 47, who lives in Buckinghamshire with his wife and their three children, currently pays £100 a month for a fixed price deal. but that ends in September.

"When I looked at getting a new deal, the only fixed prices was pushing up to £420. We will be having to look at our outgoings," he says.

Sylvia Simpson, chief executive at debt help charity Money Buddies in Leeds, told the BBC there were limited options for helping people with soaring energy bills: "The tools that we used to have before, for example, for switching utility providers to get the best deal - that has gone now. There is no switching to get the best deal anymore.

"People are really, really struggling."

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