Energy bills are expected to reach more than £4,200 for a typical household by next year, a consultancy has warned.
Cornwall Insight revealed in its January price cap forecast that households face an increase of £650, meaning they would pay £4,266 a year for the three months to March 2023.
The consultancy said Ofgem’s decision to change the price cap every three months instead of six and higher wholesale prices were one of the reasons for the sharp rise.
It also says October cap forecasts have also risen by over £200 and forecasts for an average bill now stand at £3,582.
dr Craig Lowrey, Principal Counsel at Cornwall Insight said in the online post that a review of the support packages offered to consumers is essential.
He said: “If the £400 was not enough to spoil the impact of our previous forecast, it is certainly not enough now. The government must give top priority to rolling out more support in the first two quarters of 2023.
“In the longer term, a social tariff or other support mechanisms to target support to the most vulnerable in society are options that we at Cornwall Insight have previously proposed. Right now, the current price cap is not working for consumers, suppliers or the economy.”
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