Energy prices expected to heat up next summer

The price cap is set to rise by 14% to £1,455, new analysis finds

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Analysts have predicted that the price cap next summer could ‘burn’ holes in energy consumers’ pockets.

A Cornwall Insight analysis forecasts default price cap will increase by 14% to £1,455 a year for dual fuel consumers.

If the prediction comes true, that will follow this year’s increase that saw the price cap breaking a new record at £1,277.

Dr Craig Lowrey, Senior Consultant at Cornwall Insight, said: “These figures reflect material increases in the period since our most recent default tariff cap forecast at the end of July 2021.

“However, there is a lot of uncertainty regarding the wholesale market and a long way to go before future default cap levels are confirmed in February 2022.

“With record wholesale prices now being priced in, we would need to see a material and sustained reduction in the wholesale market to avoid the kind of cap levels we are predicting for that period.”

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