New forecasts from an energy industry consultancy suggests that the average domestic consumer’s energy bills could soar to £3,363 a year from the start of 2023.
This is significantly more than the £3,003 figure released by the government.
The typical bill now is around £2,000 a year - this follows a rise of £700in April.
Some 23m households in England, Wales and Scotland have their bills governed by the energy price cap - including the vast majority of privately rented properties. The cap limits the amount suppliers can charge per unit of energy, and the standing charge, and from this winter, it is expected that a new cap will be announced every three months.
The consultancy making the prediction - Cornwall Insight - says the ongoing uncertainty regarding Russian gas flows into continental Europe, as well as more recent concerns such as the halted strike by Norwegian gas workers, have led to an increasingly volatile energy market, driving the rise in wholesale energy prices which ultimately trickles down to consumers.
While there is the potential that cap levels for Q1 2023 onwards could fall if the wholesale market retreats, with the Q4 2022 price cap currently due to be announced next month, “we are unlikely to see any significant decrease to these predictions” the consultancy warns.
Dr Craig Lowrey, principal consultant at Cornwall Insight, says: “As the energy market continues to grapple with global political and economic uncertainty, the corresponding high wholesale prices, and the UK’s continued reliance on energy imports has once again seen predictions for the domestic consumer Default Tariff Cap rise to what are even more unaffordable levels.
“There is always some hope that the market will stabilise and retreat in time for the setting of the January cap. However, with the announcement of the October cap only a month away, the high wholesale prices are already being ‘baked in’ to the figure, with little hope of relief from the predicted high energy bills.
“[Industry regulator] Ofgem are continually reviewing the cap and there are a raft of consultations and potential reforms which could impact these forecasts. However, as it stands, energy consumers are facing the prospect of a very expensive winter.”
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Increased cost of living = increased earnings = inflation, I'm sure every tradesman in the country has increased his / her hourly rate, and who can blame them
Tradesmen certainly have. Not that long ago it was around £150 to £175 a day for about an 8 or 9 hour day for a decent carpenter. Last week I had a fencing contractor in for 3 days. He turned up at 09:30 and went home no later than 14:30 and charged £200 a day. I'm sure he would say collecting the materials and disposing of the waste added extra time to his working hours but that should have been once on the first day and once on the last day, not 3 hours every day.
These figures are now meaningless.
How many households haven't made an effort to cut usage? Therefore the average consumption has to be lower than it was 12 months ago.
We need the kWh and daily standing charge prices not some fantasy household average.
We need bills to be produced every time a meter reading is submitted. Octopus do it that way so why can't Eon, EDF or British Gas?
Smart meters need to work. I've never been a fan of smart meters but eventually gave in earlier this year and had them for electric in 2 different houses. The one in my house has never had the correct tariff on it. The one in the other house doesn't have the correct tariff and it also doesn't transmit data. It's only function so far has been to make the tenants aware that cooking and boiling the kettle uses quite a bit of electric.
Instead of scaremongering we need proper information about kWh prices and sensible proven suggestions to cut usage without harming our houses or health.
Excellent points Jo!
EDF bill me monthly for power used, and that's what I pay, no estimates and no monthly DDR
Andrew - paying monthly is probably why you get proper regular bills. I still have 2 accounts with EDF with monthly Direct Debits set up and their website says: You normally get two bills a year – just after your two Direct Debit check-ins. This is when we check your payments are still on track.
The problem with that is they don't update the account balance when you submit readings, only when the DD payment goes in. So it shows an ever increasing credit balance with no indication of usage.
I had 5 accounts with Eon when I was dumped on them last September. All with DD payments. No idea why but one of them billed properly. The other 4 just showed an ever increasing credit balance. I switched all 5 accounts to Octopus in May and have only just had the final bill for 3 of the accounts last week. That was the only bill produced for the entire 8 month period and was produced so late they had to pay me £30 per account for not producing a final bill within 6 weeks of me switching. I still haven't had a bill for the 5th account.
British Gas can't do monthly billing & regular payments! How mad is that! 6 monthly updates are no good when you are running up huge fuel bills! My elderly neighbours have no idea whether they are paying enough or not!
Jo, I am sure the fencing contractor was good value you didn’t knock the work. It can be hard work especially if he has to contend with concrete founds for previous posts and a good worker is always worth it.
It might seem like a short day but apparently he was after breakfast and went before dinner so can we add that to the 5 hours. I don’t know what he was doing removing waste or get material which is another cost separate from his day’s earnings. Maybe I misunderstood but I avoid knocking the workers the ones that gets my goat are the ones that don’t work, milking the system and soon to be given our Property for free. Best wishes.
Michael - I wasn't knocking him, just agreeing with Andrew that tradespeople have already increased their rates.
Jo - I am with Octopus 🐙 and have a smart meter for both gas and electric, is there a way to check it to see if it’s got the correct tariff loaded ? And in terms of the cap… it appears to be a target ! We are in summer ( as if I have to say 🥵), wait till winter and the heating goes on 😱😱 then we all have something to worry about, in Jan it will increase again of course.
Simon - the one in my house was supplied by Octopus and is for electric. On the bottom of the counter display unit it says Chameleon Technology. On that model there's 6 white squares at the bottom right hand side of the display. Touch them and Accounts should come up towards top left. Touch that and use right hand arrow a couple of times. It should get you to tariff followed by standing charge on the next screen. Mine is currently saying 21.41p per kWh (instead of 28.4p) and daily standing charge is showing as 25.66p (instead of 51.36p).
The other smart meter was installed by Eon before I switched to Octopus for that house. The counter top display is completely different and has a different selection of information. Every time I look at it I haven't got a clue what I'm doing and just randomly press buttons until it comes up with whatever it is I'm hoping to find. There's loads of information in it but not especially intuitive to find.
The accuracy of the counter top display doesn't really matter too much unless anyone believes it's giving them correct information. The energy supplier should end up with the correct kilowatt usage regardless of how much the display unit says you have spent.
The danger is that people think the display is correct and budget for that figure. When the bill turns out to be 30% higher than the display unit said it would be they've got a problem.
I hate to think what this winter will be like. I've tried a few experiments in various houses over the last few months with things like solar diverters to take surplus solar energy to the hot water immersion heater, heat pump tumble driers in my biggest HMOs, electric throws and lowering the central heating temperature in my own house. They've all made a difference but have involved a certain amount of financial outlay.
The next one I'm going to try is the HMO heating programmers. If anyone has any experience of them it would be great to hear about.
And said,
You ain't seen nothin' yet
B-b-b-baby, you just ain't seen n-n-nothin' yet
Here's something that you never gonna forget
B-b-b-baby, you just ain't seen n-n-nothin' yet
I have worked in the energy industry for years. Smart meter roll out is staggeringly expensive and can be used to cut you off remotely (load shedding) ! According to farage on gbnews they can be used for unit pricing, ie high demand high price ! Using electricity for heating is very expensive, therefore use gas.
explains the push to everything electric
all about control , nothing else
oh and owning everything
George
If a landowner, say lord Sheffield has some crappy land, hill, etc, windfarms are a great cash cow! Lord sheffiels got a load of windfarms around the humber, very beautiful too, ie ones bank account. Of course loads of copper steel aluminium concrete. Queen gets money from offshore windfarms, she owns the seabed !
It's time she got her wellies on and tidied up her seabed!
The amount of rubbish on it is horrendous!
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