The energy bill cap could skyrocket by several hundred pounds more than nightmare forecasts predicted earlier this week, new analysis has shown.
In a preliminary forecast, experts at energy consultancy Auxilione predicted the price cap on energy bills could reach £3,687 in October – almost double today’s record levels.
In the probably worst prospects for the 24 million households whose bills fall below the price ceiling, the experts also saw further increases for 2023.
The cap could reach around £4,400 in January, they warned, although the predictions came with caveats.
Auxilione said it was reassessing its figures due to changes made to the price cap rules by energy regulator Ofgem.
“We are publishing today’s view with the caveat that we need to run our analysis again this week to double check that the results are correct. Make sure you sit down before you read on,” it said.
The price could climb further to £4,700 in April, experts said, although they warned that forecasts made this far ahead are rather unreliable.
If true, that would mean a price cap more than four times higher than before the gas price crisis began last year.
Plunges won’t materialize until July, when the price cap could drop to £4,000 – but that’s still double current levels.
Auxilione said the changes – which increased the January price cap by around £400 compared to Friday’s forecast – were largely due to new Ofgem rules announced earlier this week.
“On Thursday, Ofgem released their final models, including some changes to allowances within the cap, such as: B. restoring some of them over a shorter period of time,” it said.
“Now that we’ve analyzed them, we’re wondering if they’re showing the right results.
“In the last 24 hours we have compared our readings to other analysts who also appear to be in the same position as us – in disbelief in the readings.”
This will spell serious hardship for many households struggling to keep their homes warm.
Experts recommend many techniques to reduce gas consumption. One of the simplest is to reduce the head temperature on a boiler, which could save around £200 on an average energy bill.
The flow temperature indicates how hot the water is that flows to your radiators. Lowering allows your boiler to work more efficiently.
It doesn’t change how warm your home gets, although it may take a little longer to warm up.
The technology only works in houses with a condensing combi device. You can find instructions on how to do this online.
Many boilers are also set to a “preheat” mode, which constantly keeps a small amount of water warm when you leave the taps running.
Turning this off will mean your hot water tap will take longer to warm up, but again it could save hundreds of pounds.
There are many other ways to reduce gas usage, but most require an upfront investment that can pay off over time.
This includes new insulation, servicing your boiler or radiator, replacing single glazing with double glazing and much more.
https://www.belfasttelegraph.co.uk/news/uk/energy-bills-cap-could-hit-about-4400-in-january-analysis-shows-41893739.html Energy bills cap could hit about £4,400 in January, analysis shows