British households are bracing for another increase in their energy costs as mounting international competition for gas continues to drive prices upward. Cornwall Insight, a leading energy consultancy, projects that Ofgem will announce a £19 rise in the typical household’s dual-fuel energy bill this Friday, pushing costs to £1,736 annually.
The latest projection marks a significant shift from earlier forecasts, which had suggested a potential decrease. The revision reflects persistent market pressures and heightened global demand for natural gas. The current price cap, which rose to £1,717 last month, represented the first increase since January 2023.
The timing of this announcement coincides with a severe cold snap across the UK, with the Met Office issuing yellow weather warnings for snow and ice across substantial portions of the country. Market analysts note that energy prices remain hundreds of pounds above historical averages, with global events continuing to influence market volatility.
Craig Lowrey, principal consultant at Cornwall Insight, emphasises that supply concerns have maintained market volatility throughout the year. The consultancy advocates for the consideration of social tariffs, price cap adjustments, and targeted support mechanisms for vulnerable households.
The situation is particularly concerning for pensioners, as recent policy changes have resulted in the withdrawal of winter fuel payments from approximately ten million recipients. These payments, valued at up to £300, are now restricted to individuals receiving pension credit or means-tested benefits.
Britain’s increased dependence on American liquefied gas imports, following the Russian invasion of Ukraine, has contributed to price instability. The competition for gas supplies has intensified further due to heightened Asian demand, resulting in elevated European gas prices and creating additional pressure on UK household budgets.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.