Energy bills are now expected to increase by £196 a year from 1st July.
While the new analyst projections are not as high as first feared, oil and gas wholesale markets remain volatile and households will face steep rises in their bills.
Cornwall Insight said its prediction for Ofgem’s cap from July to September now stands at £1,837 for a typical dual fuel household, an increase of 12% on April’s cap. In April, energy bills fell due to measures taken by the Government in the 2024 Budget.
Meanwhile, around 24 million people are worried about their ability to pay their energy bill over the next six months according to debt charity StepChange as it called for an energy social tariff to help struggling households.
A spokesperson for the End Fuel Poverty Coalition, said:
“The damage from the latest oil and gas price crisis is already baked into price cap predictions. Millions of households in fuel poverty are going to be asked to find more money for energy on top of prices that are already unaffordable.
“Fossil fuel wholesale markets remain volatile, global events continue to dictate what we pay for energy and families already struggling with energy debt have no buffer left to absorb further rises.
“A smaller than planned increase is not relief. It is still an increase that will push more people into crisis and generate higher profits for the oil and gas industry.
“The Government must set out what help is going to be available for households both in the short and long term.”