To put that into context, the current price cap for household annual bills is £1,971.
However, he also defended Ofgem’s decision, which will hopefully lead to lower bills in the second half of next year.
This will happen because Ofgem is making it easier for energy suppliers to recover their costs. By doing this, fewer suppliers will fail – and the cost of those failures will not need to be passed on to customers. “With many energy suppliers under financial pressure, and some currently making a loss, maintaining the current timeframe for suppliers to recover their hedging costs could risk a repeat of the sizeable exodus seen in 2021,” Dr Lowrey said.
“Given that the costs of supplier failure are ultimately met by consumers through their energy bills, a change which means that this is less likely is welcome, even if the timing of it may well not be.”The price cap forecasts from Cornwall show bills reaching £4,427 in April, before finally dropping slightly to £3,810 from July and £3,781 from October next year.
The government is providing direct support to millions of people to help them with their energy bills this winter.
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