Energy customers might have to learn to live with skyrocketing prices for more years to come, according to a new study.
The consultancy notes this is ‘significantly above’ the five-year pre-2021 historic average of £50/MWh in winter and the lower prices in pre-2021 summer.
The report also predicts that although prices will drop from the current levels, they will still remain high.
Analysts expect that prices will rise to £150/MWh in winter 2025 as a consequence of closures of nuclear power stations, delays in the commissioning of Hinkley Point C and increasing high-cost peaking capacity.
Tom Edwards, a Senior Modeller at Cornwall Insight, commented: “To stabilise and reduce power prices will take two important steps. Firstly, reducing our reliance on volatile fossil fuel prices by diversifying supplies and increasing renewables power generation.”
A few days ago, Cornwall Insight predicted that the price cap will remain above £2,000 for 2023 and 2024.