UK energy bills could rise 30% in 2022, warn analysts

(The Guardian, 7 Oct 2021) Cornwall Insight says expected surge in wholesale prices and rise in UK energy price cap will feed hefty increase.

Energy bills could rise by as much as 30% next year if gas and electricity prices continue to soar and more suppliers go bust, according to a new report.

The research firm Cornwall Insight is forecasting that the energy price cap, set at a record £1,277 a year from 1 October, is going to have to be significantly boosted in spring 2022 as the energy crisis continues.

The firm expects the energy price cap to be put up by about 30%, to about £1,660, by the industry regulator. Ofgem has said that if gas prices rise, or stay at such elevated levels, it will have to push the price cap up when it is reviewed on 1 April.

“With wholesale gas and electricity prices continuing to reach new records, successive supplier exits during September and a new level for the default tariff cap, the Great British energy market remains on the edge for fresh volatility and further consolidation,” said Craig Lowrey, a senior consultant at Cornwall Insight.

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The Guardian, 7 Oct 2021: UK energy bills could rise 30% in 2022, warn analysts