Research firm Cornwall Insight has published new, higher forecasts showing the energy price cap is set to rise to £3,244 a year in October, when it will be adjusted immediately, as wholesale prices continue to soar. The default tariff cap is expected to rise again in January to £3,363 a year, significantly higher than Cornwall Insight’s forecast of £3,003 just two weeks ago. The cap, which is set quarterly by energy industry regulator Ofgem, is currently at a record £1,971 a year. “Energy consumers are facing the prospect of a very expensive winter,” said Craig Lowery, principal consultant at Cornwall Insight. “As the energy market continues to face global political and economic uncertainty, correspondingly high wholesale prices and the UK’s continued reliance on energy imports has once again seen forecasts for the domestic consumer default tariff cap to rise to even more unbearable levels. .” Cornwall Insight blamed continued uncertainty over Russian gas flows to mainland Europe, as well as more recent concerns, such as the Norwegian gas workers’ strike stoppage, for fueling high wholesale prices that are ultimately passed on to consumers. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk “There’s always some hope that the market will stabilize and pull back in time for the January cap,” Lowery said. “However, with the October cap announcement just a month away, high wholesale prices have already been baked into the figure, with little hope of relief from predicted high energy bills.” Consumers are increasingly struggling with the rising cost of living – inflation is at a 40-year high – with half of Britons saying they bought less food than normal between June 22 and July 3, according to the Office for National Statistics. Cornwall Insight’s latest forecasts do not include the impact of the government’s multibillion-pound support package, including a £400 rebate for every household in the country in October and a £150 council tax rebate. Vulnerable people are entitled to further financial support.
