Winter price cap predicted to rise by more than £500

Analysts have lowered their predictions estimating that the winter cap will be £2,512

The winter price cap is predicted to be £2,512, new analysis suggests.

Cornwall Insight has reduced its previous prediction by nearly £400 since 7th March when the consultancy estimated that the cap level could reach £2,962.

Last month, analysts at the wealth management group Investec said the current wholesale prices mean that the October tariff cap could soar above £3,000.

Analysts now stress that according to the latest estimates an average consumer’s energy bill will rise by more than £500 from the cap due to be implemented next month.

From 1st April, energy bills will rise by £693.

Later today, the Chancellor will present his Spring Statement to the House of Commons – reports had previously suggested the mini-Budget would include measures to support households against the rising cost of living.

Gareth Miller, Chief Executive Officer at Cornwall Insight, said: “The fall in our winter price cap predictions is clearly going to be welcomed given the much higher figures that have been circulating recently.

“However, we have to remember that even at these levels consumers will still be seeing a significant increase from what will already be a 54% uplift in April.”

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