Price hikes predicted to last until at least the end of 2023

Analysts have suggested people “haven’t started feeling the pinch yet”

Big Zero Report 2022

Millions of energy customers in the UK could face enormous pressures because of soaring energy prices for one year and a half.

Addressing the Scottish Parliament’s Net Zero, Energy and Transport Committee, Dr Richard Lowes, Senior Associate, The Regulatory Assistance Project, said: “I think in terms of prices, you should never ask anyone to predict energy price in the long term. In the short term, I think the key thing to note is that people have not started feeling the pinch yet.

“People have not really felt these bill impacts yet. And while we roughly know what the bill impacts will be, people’s direct debits may only have just gone up.”

A few days ago, consultancy Cornwall Insight predicted that bills would stay above £2,000 for two more years.

Dr Lowes added: “The prices are possibly double what they were last year – in the medium term, the gas future market’s price is still very high – so we are not likely to see any of that stuff before 2023.

“So, that’s at least a year and a half of struggle and high costs.”

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast