It was Friday, 26th August 2022, a day etched into the memory of countless households across the nation.
On that day, Ofgem, delivered news that rocked the UK’s energy market, causing worries that are still felt today.
It was on that very day that the energy regulator declared its decision to dramatically increase the energy price cap to a staggering £3,549 annually, effective from 1st October 2022.
This marked a staggering escalation from the previous cap of £1,971, leaving families to grapple with a sudden and unprecedented surge in their energy bills.
Since October 2022, there has been a government intervention through the energy bill support scheme, providing crucial assistance.
Nonetheless, this aid has now come to an end.
Ofgem’s impending announcement of the October 2023 price cap this Friday has left consumers on edge, wondering whether any substantial relief is on the horizon.
Cornwall Insight’s latest forecast suggests a modest drop to £1,871 for a dual fuel household based on typical energy consumption.
However, this figure still remains significantly higher than pre-crisis levels.
Back in January 2019, the price cap stood at a relatively modest £1,137. Just a few months later, in April 2019, the energy price cap experienced its first upward shift, landing at £1,254.
By October 2019, households found themselves facing a cap of £1,179. Amidst the challenges of 2020, the energy price cap showed only a marginal decrease, settling at £1,162 in April.
October 2020 brought a more significant change, with the energy price cap dropping to £1,042.
As the world continued to grapple with the pandemic’s effects, April 2021 marked another increase in energy prices – the cap reached £1,138.
By October 2021, the energy price cap had soared to £1,277 – a few months later, in April 2022, the energy price cap reached £1,971.