Price cap to ‘skyrocket by 46%’

Summer price cap forecast to rise to around £1,865 says report

Big Zero Report 2022

Households could see their energy bills soar in the coming months as a consequence of a 46% increase in the current price cap.

Cornwall Insight forecasts that the domestic default tariff price cap for Summer 2022 will increase to approximately £1,865 per year, with the potential for further increases.

The current winter 2021-22 cap level stands at £1,277 per annum.

The authors of the report also noted the winter 2022-23 price cap could be around £2,240.

More than two dozen energy retailers collapsed or quit the market, in a matter of weeks as a result of the soaring energy prices last year.

A recent report estimated that the fallout could leave customers with a bill of £2.6 billion.

Dr Craig Lowrey, a Senior Consultant at Cornwall Insight, said: “With Ofgem examining a wide range of potential reforms to both the cap and the way in which the costs associated with supplier failures are recovered, we not that there is still a large amount of uncertainty relating to the level and structure of the cap.”

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