British people could be facing energy bill increases by 30% in 2022. Research agency Cornwall Insight has predicted further volatile gas prices and the potential collapse of even more suppliers could push the energy price cap to about £1,660 in summer.
The forecast is approximately 30% higher than the record £1,277 price cap set for winter 2021-22, which commenced at the start of October. The prediction comes as Universal Credit is cut by £20:
This is the day when the Government deliberately pushes 840,000 people into poverty with £20 cut to #UniversalCredit when
📈Prices are rising
📈 energy bills are rising
📈NI is going up
When PM says levelling up, for many he means crushing down
— Caroline Lucas (@CarolineLucas) October 6, 2021
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Craig Lowrey, senior consultant at the firm, said:
With wholesale gas and electricity prices continuing to reach new records, successive supplier exits during September 2021 and a new level for the default tariff cap (£1,277 for a typical dual fuel direct debit customer) for Winter 2021-22, the GB energy market remains on edge for fresh volatility and further consolidation.
The obvious solution?
This could be avoided if the government brought these companies back into public ownership. But until then, it’s British people who’ll suffer the consequences:
UK energy bills could rise 30% in 2022. Wages won't, levelling-down will follow.
Govt could eliminate profiteering by bringing companies into public ownership but it won't. People will cut discretionary expenditure, won't help to rebuild the economy.https://t.co/7h4wJdXs1o
— Prem Sikka (@premnsikka) October 7, 2021
Energy regulator Ofgem reviews the price cap once every six months, and changes it based on the cost that suppliers have to pay for their energy, cost of policies and operating costs, among other things.
In a statement to the BBC, Ofgem acknowledged it was a “worrying time for many people”.
The regulator added:
The energy price cap covers around 15 million households and will ensure that consumers don’t pay more than is absolutely necessary this winter.
However if global gas prices remain high, then when we update the price cap unfortunately the level would increase.
Any customer worried about paying their energy bill should contact their supplier to access the range of support available.
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