Household energy bills are now almost certain to increase from July as soaring gas wholesale costs are due to push up the Ofgem price cap.
Cornwall Insight said its prediction for the watchdog’s price cap from July to September now stands at £1,929 for a typical dual fuel household. This represents a rate £887 above winter 2020/21 and 23% higher than at the last general election.
But the new analysis marks a slight fall from forecasts earlier this month.
A spokesperson for the End Fuel Poverty Coalition commented:
“Households are staring at another energy bill shock after a brief fall in prices from 1 April to 30 June.
“This represents a £288 ‘Trump Tax’ added to energy bills because of the impact of the conflict in the Middle East on oil and gas prices.
“For the millions of households already in energy debt, this will be a real worry and risks pushing more people into crisis.
“Ministers must prepare to use increased Windfall Tax receipts to act. That means targeted support for households hit first and hardest, including those off the gas grid and on heat networks, alongside faster action on energy debt and preparations to bring down costs if prices spike further.
“But we cannot keep letting history repeat itself. The only way to break this cycle is to ramp up energy efficiency, roll out homegrown renewables and fix electricity pricing so households see the benefit of cheaper clean power.”