Cost of Living Crisis: Energy bills could reach £400 a month

Electricity bills shoot up to £400 a month

Advisors warn the price cap could rise to £4,700 by April 2023 (Image: Gareth Fuller/PA)

Already ailing Brits will have to pay £400 a month on energy bills from next year as the price cap is expected to go even higher.

It is feared the annual limit set by regulators could rise to a staggering £4,700 by April next year.

It equates to £391 a month and will only add to the pain faced by many struggling households.

The family’s annual expenses, including energy, mortgage payments and grocery bills, could rise by £6,000 by December year-on-year due to rampant inflation.

Energy consultancy Auxilione predicted that the price cap on energy bills could reach £3,687 in October, almost double today’s record level.

It’s believed to be the worst outlook yet for the 24 million households whose fees are subject to the cap, with further increases expected in 2023.

Auxilione added the cap could reach around £4,400 in January – but said it was not certain.

Electricity bills shoot up to £400 a month

Experts have issued tips on how to save on home heating ahead of a painful winter
(Image: Steve Parsons/PA)

The consultancy said it was reassessing its figures due to changes in price cap rules made by industry regulator Ofgem.

It added: “We are releasing today’s view with the caveat that we need to run our analysis again this week to verify that the results are correct. Make sure you sit down before you read on.’

If it is true that the price could rise to £4,700 in April, that would mean a price cap more than four times higher than before the gas price crisis in 2021.

Plunges will not materialize until July, when the price cap could drop to £4,000. But that would still leave it at double power levels.

Auxilione said: “On Thursday, Ofgem released its final models, including some changes to the allowances within the cap, such as: B. restoring some of these over a shorter period of time.

“Now that we’ve analyzed them, we’re wondering if they’re showing the right results.

“Over the last 24 hours we have been comparing our readings to other analysts who also appear to be in the same position as us – in disbelief in the readings.”

A leading charity warned at the end of June that around seven million families in the UK are going through a “scary year of financial anxiety” and are going without food, heating, toiletries and even showers to cope with the rising cost of living crisis.

The Josephy Rowntree Foundation added that the depth of poverty faced by low-income households is so severe that more than two million households would no longer choose between “heating or eating,” having already given up on either .

It says many are also heavily in debt, living on credit cards and cash from loan sharks just to pay for basic necessities like groceries and electricity.

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https://metro.co.uk/2022/08/06/cost-of-living-crisis-energy-bills-could-reach-400-a-month-17139518/ Cost of Living Crisis: Energy bills could reach £400 a month

Justin Scacco

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