There’s a new warning that the cost of living crisis facing landlords and tenants could get sizeably worse thanks to yet another energy price rise this coming winter.
The Cornwall Insight business consultancy says a predicted average energy price increase of over £600 from today’s rise - expected in October- would mean that energy prices would have doubled in just one year.
Dr Craig Lowrey of Cornwall Insight says: “If Cornwall Insight’s predictions for the Winter 2022-23 cap are realised, households will be set for yet another significant hit to their finances in October.
“While the government’s £350 worth of support will provide some respite to consumers this time around – albeit not far enough – with the [energy price] cap almost guaranteed to rise again, the government will need to look at expanding the scale and scope of this support after October at the very least.
“Originally brought in to shield consumers from significant bill rises, the limitations of the cap are once again being demonstrated, with our predictions showing energy bills could be set to double in just one year.
“The energy market is a different place even from two months ago, let alone four years ago when the cap was introduced, with these latest figures further highlighting that the cap serves to defer wholesale price increases – not eliminate them.”
He says there are many external influences that make exact forecasts difficult.
“High prices and volatile markets caused by geopolitical and economic concerns, will inevitably have an impact on our goal to increase renewables. It is important that we lower bills for consumers and shore up energy supplies – which may mean looking at some compromises on the speed at which fossil fuels are phased out.
“However, ultimately we cannot let the current energy crisis derail our efforts to reach net-zero by 2050 and the growth in low carbon and renewable energy.”