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Daily Mirror
Daily Mirror
Business
Sam Barker

Energy bills warning as Brits set to shell out £4,200 a year from this winter

Energy bills could hit £4,200 a year from January, according to worrying new analysis.

Expert analysts at Cornwall Insight say the average home will pay £3,582 a year from October 2022 and £4,266 a year from January 2023.

The firm's predictions got worse from last week, when the firm said gas and electricity bills would be £3,359 a year in October and £3,616 in January.

A Cornwall Insight statement said this was due to "a change in calculation methodology" by energy regulator Ofgem.

Are you worried about rising energy bills this winter? Let us know: mirror.money.saving@mirror.co.uk

Energy firms can now recover some of their hedging costs over six months rather than 12, leading to even higher bills for consumers in the coming months.

"These new forecasts for the January to March 2023 quarter further underline the need for support for households who will struggle to pay their energy bills this winter," Cornwall Insight added.

Liz Truss today repeatedly refused to promise new cost-of-living payments for Brits despite a “terrifying” rise in energy bills this winter.

The newest predictions even beat the previous worst-case expectations for energy bills from analysts at BFY.

BFY said these costs could hit £3,420 in October - then £3,850 when the price cap is reviewed again in January 2023.

The most positive predictions for energy price rises in October are from Ofgem.

Ofgem chief executive Jonathan Brearley has said the October price cap will be "in the region of £2,800" - although this comment was made back in May.

What is the Ofgem energy price cap?

Despite what its name suggests, the price cap isn't really a limit on how much you pay for energy - but it does work a bit like that.

Instead, it sets a limit on the rates a supplier can charge for each unit of gas and electricity you use.

It is reviewed four times a year - every January, April, July and October.

Ofgem says the idea of updating the price cap more frequently is that it allows for more accurate pricing.

But critics say it also allows energy bill rises to be passed on faster to consumers on variable rate energy deals limited by the price cap.

More than 80% of the country now has price-capped energy deals.

Ofgem first introduced the price cap in 2019 and it is based on a number of factors including the wholesale cost of power in the previous six months.

What energy bill help is available?

Talk to your energy bill provider as soon as possible if you can't pay your bill - they might be able to put you on a payment plan or offer some sort of tailored support.

It's also worth asking them if you're definitely on their cheapest deal.

All the big energy firms have charitable hardship funds and grants that you may be eligible for if you’re struggling.

For example, the British Gas Energy Trust can be accessed by anyone - not just its customers - providing you meet the eligibility criteria.

If you’re over the state pension age, you may be eligible for the Winter Fuel Payment scheme, worth between £100 and £300 during the winter months.

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