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UK energy price cap set to rise 16% from January, adds £276 a year
Cornwall Insight says the January to March increase would outpace its earlier 9% forecast as gas prices in Europe approach three-year highs.
Energy bills in Great Britain are forecast to rise by £276 a year starting in January, as the government energy price cap is expected to increase by 16% amid continued pressure on household energy costs, the Guardian Business reports.
Cornwall Insight estimates the cap would move to the equivalent of about £1,999 for the typical annual dual-fuel bill, reflecting a larger quarterly jump than its previous prediction of a 9% rise for the January to March period.
The consultancy attributes the bigger-than-expected increase to a recent rise in gas market prices in Europe, which it says have reached three-year highs.
The report notes the impact is expected to be felt through the coldest winter months, as the Middle East conflict continues to weigh on energy markets.