MILLIONS of households will see their energy bills reach £1,800 by April next year according to latest price predictions, as the cost of living crisis continues.
Experts predict the energy price cap will climb to £1,800 a year from next April as the price of wholesale gas soars.
The cap — which limits what suppliers can charge for their standard or default tariffs — was raised by £139 to £1,277 a year earlier this year.
However, next year could see a record-breaking hike, as experts have forecasted the price cap could rise to £1,800.
Energy market consultants Cornwall Insight previously predicted the price cap in April 2022 would hit £1,660, but has since revised this figure to £1,800 for the summer period.
However, this figure doesn't include the cost that customers will need to foot for collapsed suppliers – adding an extra £100 at least onto this figure.
The biggest casualty of the energy crisis so far has been Bulb – which experts say could add £60 more onto energy bills alone even if you're not a customer.
A Cornwall Insight spokesperson said: "With concerns over energy supply availability for the coming winter and wider geopolitical issues that may affect gas European supplies in particular next year, the wholesale markets are experiencing renewed volatility."
Most read in Money
CUT IT OUT
Keeper sent off BEFORE kick-off in final after VAR catches sick gesture to fans
CUT IT OUT
Dad 'finds newborn baby dead' in freezer as two women arrested over murder
Four twins, 3 & 4, killed alone in house fire after as woman held for neglect
Hamilton could QUIT F1 after being left 'disillusioned' by Verstappen's victory
Financial expert Martin Lewis tweeted that the latest forecast is "catastrophic", adding that "unless Ofgem changes things" it will be an "average 48% bill hike for most British homes".
So far, at least 24 suppliers have gone under this year as the industry struggles to cope with soaring wholesale gas prices.
Demand for natural gas recovered after the pandemic at a faster rate than supply has been able to keep up with.
These costs have been passed down to customers in most cases.
The latest advice customers have been given is to stick with their current provider, even though it's usually a good idea to switch supplier every six months to find a cheaper tariff.
How can I get help with energy bills?
If you're struggling to pay your energy bills as prices soar, there are a number of ways you can get help.
One is the winter fuel payment scheme, where over 65s can get between £100 and £300 to offset the cost of keeping their homes warm.
There are some suppliers that have charitable trusts, which help you pay off any arrears you might have.
British Gas Energy Trust, for example, runs a scheme where anyone can apply for a grant, and you don’t even have to be a customer.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
You’ll get a payment if the average temperature in your area is zero degrees celsius or below over the space of a week.
Plus, the warm home discount scheme means you can a £140 payment that goes toward your heating costs.
We pay for your stories!
Do you have a story for The Sun Money team?
Email us at [email protected]
Source: Read Full Article