Households could see a significant increase in energy costs this summer, with the energy price cap projected to rise by around 13% in July. Millions on default tariffs may face higher bills unless they switch to cheaper fixed-rate deals already available. The increase is described as largely avoidable for consumers who shop around before existing deals expire. If consumers do not act, they may drift onto higher standard variable tariffs automatically. The forecast is linked to renewed wholesale market volatility and seasonal pricing adjustments that feed into retail prices with a delay. The expected cap rise could reverse recent easing in household bills, adding pressure amid elevated living costs across the UK.
"Cornwall Insight has warned that households could face a significant increase in energy costs this summer, forecasting that the energy price cap may rise by around 13% in July - a move it says consumers could largely avoid by acting sooner. The energy consultancy's latest projection suggests that millions of customers on default tariffs risk higher bills unless they switch to cheaper fixed-rate deals already available in the market."
"Analysts at the firm described the expected increase as "completely avoidable" for households willing to shop around now, arguing that current fixed-rate offers remain below the level implied by the forthcoming cap rise. They cautioned that inertia could prove expensive, with many consumers expected to drift automatically onto higher standard variable tariffs once existing deals expire."
"The warning comes amid renewed volatility in wholesale energy markets, which continue to feed through into retail pricing with a delay of several months. Cornwall Insight said the combination of rising wholesale costs and seasonal pricing adjustments was likely to push the regulator's price cap higher, reversing recent easing in household bills."
""A rise of this magnitude will be alarming, especially with higher costs forecast for the winter too. Thankfully, households can opt out of this price rise if they act now. "The expected 13% rise to energy bills is completely avoidable. A number of fixed tariffs currently undercut the predicted price cap, some by over £200 for the average home.""
#energy-price-cap #household-energy-bills #fixed-rate-tariffs #wholesale-energy-markets #tariff-switching
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]