The Government’s cap on energy prices looks set to rise by a further £178 per year from April next year as gas prices soar, according to modelling from researchers at Cornwall Insight, a market intelligence agency.
The agency’s researchers expect the price cap will be raised to £1,455 for the six months from the beginning of April.
This would be a 14% rise from the already record-breaking £1,277 that customers will pay between October and April, and up £317 from current levels.
Senior consultant Dr Craig Lowrey said: “Although the winter 2021-22 cap was a new record (£1,277 for a typical dual fuel direct debit customer), Cornwall Insight modelling indicates that – given the extent of the increases in the wholesale market and the manner in which the cap is set – this is set to be surpassed by that for summer 2022.”
The forecasts also predicted that prices would remain high – at £1,416 – next winter.
The level of the price cap is reviewed twice a year.
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