Energy bills predicted to stay above £2,000 for two more years

In just two weeks, predictions for the 2023 price cap level jumped by more than £200 a year, according to a new report

Big Zero Report 2022

Hopes for significant drops in the energy bills evaporated after the publication of new research that forecasts the price cap will remain above £2,000 for 2023 and 2024.

Consultancy Cornwall Insight has raised its predictions for the Summer 2023 and Winter 2023/2024 default tariff cap by 15% in just two weeks.

Analysts predict a level of £2,284 and £2,233 respectively for the two periods, based on data from the market close on 12th April.

Dr Craig Lowrey, a Consultant at Cornwall Insight, said: “In the space of just two weeks, predictions for the price cap levels due in the Summer and Winter of 2023 have jumped by over £200 a year for an average household.

“Of course, many of the variables which drive our forecasts can change before the cap setting periods for next year, but the risk is weighted to the upwards rather than downwards pressure on the price cap right now.”

A few weeks ago, a report found that third-party charges on household energy bills jumped by 33% for gas and 9% for electricity this year, compared with 2021-22 prices.

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