HOUSEHOLDS are facing another energy shock in October when bills could surge by a further £600.
Families could be hit with further increases just months after today’s energy price cap hike, which has added £693 on to the average bill.
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The price cap has risen to £1,971 today (April 1) – a 54% jump – adding hundreds of pounds to millions of households’ energy costs.
Experts have predicted that the cap could rise a further £600 in October, taking the average bill to £2,571.
If the forecast from Cornwall Insight is correct, that means the cap will have doubled in just one year.
The price cap limits how much energy suppliers can charge for their standard variable tariffs.
The £1,971 figure – and £2,571 prediction for October – is based on average use, so bills could be higher or lower.
Your actual bill will depend on a number of factors, including how much energy you use, where you live, your supplier, how you pay and what kind of meter you have.
Cornwall Insight’s analysis is just a prediction, and the actual October price cap will be announced by energy regulator Ofgem in August.
Craig Lowrey, principal consultant at energy analysis firm Cornwall Insight, said: “The price cap being brought in today is a significant increase from 2021.
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“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 – all-be-it not far enough – with the 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.”
The firm said predictions for the cap are likely to change because of the volatility of wholesale gas prices, which are being affected by the war in Ukraine and sanctions on Russia.
There are still four months to go before the winter price cap is announced in August.
But Cornwall Insight added that “significant cap rises look inevitable”.
The latest forecast is down on previous predictions that the cap could hit £3,000 in October.
What energy bill help is available?
If you’re struggling with your energy bills, there is help available.
The government is giving 80% of households a £150 council tax rebate, which will start to be paid out from today.
It will also give all families a £200 energy bill refund from October, but this will have to be paid back eventually.
Your first step if you’re struggling should be to speak to your energy supplier.
It may be able to change your payment plan or check if you’re eligible for a hardship fund.
For example, British Gas and Octopus have both set up funds to help customers who are struggling with their bills.
British Gas announced yesterday that it has added an extra £2million to the pot of cash set aside to help customers.
You should also check that you’re getting all the benefits you’re entitled to.
Use an online benefits calculator to make sure you’re not missing out on any extra cash.
Similarly, you can search for grants that can help you pay for gas and electricity bills.
The government recently announced an extension to the Household Support Fund to help families with the rising cost of living.
Contact your local council to find out what support is available in your area.
You should also check out tips to make your home more energy efficient, which could wipe hundreds of pounds of your bills.
For example, you can reduce your energy use with a simple trick such as putting foil behind your radiator.
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