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Energy Bills Poised To Hit £4,000 A Year, Experts Warn

by Cable and Company
August 6, 2022
Reading Time: 2 mins read
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Energy Bills Poised To Hit £4,000 A Year, Experts Warn
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Energy consultancy Auxilione warned that the Government’s price cap, which sets bills for more than 20 million households, could be increased further than previously expected. It said that between October and December the price cap is likely to be £3,488 per year for the average household. Energy bills are currently capped at £1,971 – already a record high.

But from January the price will soar by another £500, hitting £3,994, research from the company showed.

Auxilione’s forecast comes less than a day after analysts at Investec forecast that October’s price cap will be £3,523, with bills rising to an eye-watering £4,210 in January.

On Wednesday, Russian state producer Gazprom said it was “impossible” to take back a turbine vital for gas supplies to Europe due to Western sanctions. The turbine is stranded in Germany but Berlin insists the equipment is not affected by sanctions and accuses Russia of not honouring its contracts for political reasons.

The key Nord Stream 1 pipeline from Russia to Germany is running at 20 percent capacity.Auxilione said yesterday: “With just one of the six turbines currently in operation, this puts the current 20 percent flow rate at risk.”

The news adds to the nightmare scenario for households the Bank of England set out on Thursday.

It expects Consumer Prices Index inflation, a measure of the cost of living, to reach 13.3 percent in October as energy bills increase. Around half of the inflation is directly due to the price of energy.

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