Martin Lewis warns energy price cap could soar close to £3,000 in October

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Martin Lewis has warned that the energy price cap could skyrocket by an extra £1,000 initially of October, after a brand new forecast was launched on Monday.

The cap could rise to round £2,980.63 for the subsequent interval – which runs between October and December, Cornwall Insight has mentioned.

Currently, it’s £1,971 – already a document which beat the earlier excessive by 54%. Previous estimates of the autumn energy cap put it £2,800.

On Twitter, the buyer professional mentioned: “Just got latest @CornwallInsight price cap predictions. Wholesale prices spiked heavily last week, so they’re up a lot.

“Today’s price cap: At typical use = £1,971/yr Prediction Oct – Dec: UP 51% (£2,980/yr typical use) Prediction Jan – Mar: UP 1% (£3,000/yr typical use)”.

For the subsequent interval, between January and March 2023 the energy cap will additional rise to £3,000 per yr, Cornwall Insight indicated. It suggests excessive costs are right here to keep for a while for British households.

The quickly rising energy cap prompted motion from chancellor Rishi Sunak who final month annnounced information/uk/politics/rishi-sunak-windfall-tax-uturn-b2088245.html”>a £15bn cost-of-living assist bundle that included doubling a deliberate rebate on gas payments from £200 to £400.

Energy costs on wholesale markets have been hovering over the previous yr. The will increase had been at first attributable to excessive demand as international economies reopened following the Covid-19 pandemic.

However, Russia’s struggle on Ukraine has prompted costs to spike even additional as international locations have tried not to purchase pure gasoline from Vladimir Putin’s regime over issues it could be used to fund the unprovoked battle.

The disaster has additionally diminished the variety of energy suppliers in the marketplace to simply over 20, whereas competitors has been destroyed. No suppliers are in a position to supply a price under the cap‘s degree.

The pricecap is already worse for purchasers than it has ever been. For a mean family, the price of energy elevated from £1,277 to £1,971 in April.

Previously, the price had been as little as £1,042 in the summer season of 2020 – the most affordable because the coverage first got here into drive in 2019.

Additional reporting by PA

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