Britain's energy price cap to hit three-year high in October, Cornwall Insight says
Cornwall Insight said global energy prices and higher gas demand have outweighed the planned VAT cut, lifting a typical household bill to £1,729.
- Household energy prices are set to reach their highest level for three years this October, marking the highest average bill since July 2023 as families prepare for winter.
- Analysts attribute the price surge to uncertainty linked to the Middle East conflict, which pushed wholesale energy prices higher, while ongoing European heatwaves increased gas demand for power generation.
- Cornwall Insight experts forecast a 4% energy price cap increase this October, though Prime Minister Andy Burnham is removing VAT from electricity bills for six months, expected to knock around £45 off annual costs.
- Rising energy bills will hit struggling households especially hard as winter approaches, said Dr. Craig Lowrey, principal consultant at Cornwall Insight; the increased cap remains in place for three months.
- While temporary relief like VAT cuts helps soften the blow, Britain's heavy dependence on imported natural gas remains an underlying issue, reinforcing the argument for reducing reliance on volatile international energy markets.
7 Articles
7 Articles
Britain's energy price cap to hit three-year high in October, Cornwall Insight says
Britain's domestic energy price cap is forecast to rise about 4% in October to a three-year high, analysts at Cornwall Insight said on Wednesday, with higher wholesale costs due to the Iran war expected to wipe out the government's tax cut on electricity bills.
Energy bills jump 4% to £1,729 from October - but fixed tariffs save you £207 | The latest National and International News
IEA / Wikimedia Commons / CC BY 4.0 UK households face a fresh blow as energy bills are set to rise by 4% from October 1, reaching an annual cap of £1,729. The increase of £66 marks the highest level since July 2023 and comes just as winter approaches, driven by the US-Iran conflict pushing wholesale gas prices to nearly four-year highs. The forecast from Cornwall Insight shows the price cap climbing from the current £1,663, despite Prime Minist…
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