ENERGY bills in the UK could reach over £3,300 annually by this Winter as the cost-of-living crisis continues, research firm Cornwall Insight has revealed.
They predicted a 64% increase in the energy price cap by October when it is next adjusted by industry regulator Ofgem.
The cap, which is set quarterly, is at a record high of £1971 annually. The firm stated that the “increasingly volatile energy market” could be attributed in part to “ongoing uncertainty regarding Russian gas flows”.
Many have also questioned why the cost of prices is being passed onto households during the cost-of-living crisis pushing households to the brink, while simultaneously energy companies have seen staggering increases in profits.
The UK Big Six energy firms made over £1 billion in profits ahead of this year’s record increase in bills.
READ MORE: Half of adults are buying less food to cope with cost-of-living crisis
Mathew Lawrence, director of think tank Common Wealth, had stated previously to The i: “Ofgem has chosen to allow the costs of spiralling fossil fuel prices to be passed onto households, by increasing the energy price cap. This has left low and middle-income households struggling to pay bills.
“As shareholders make vast sums, a rapidly growing number of households are being exposed to fuel poverty. This is a political choice – where alternatives existed. A windfall tax on oil and gas companies could have funded support to keep bills lower or offset the increases.”
Rough Ready Reckoner based on predicted future price cap...
— Martin Lewis (@MartinSLewis) July 8, 2022
If you pay £100/mth now, from Oct £165, Jan £170
If you pay £150/mth now, from Oct £250, Jan £255
If you pay £200/mth now, from Oct £330, Jan £340
If you pay £300/mth now, from Oct £495, Jan £510
I'm sorry. https://t.co/e5Wfk2vkyV
Martin Lewis said he felt “sick” sharing the news to his Twitter followers, further sharing estimates that showed if your bills are £150 per month now, that from October you could expect these to rise to £250 per month.
Recent figures from comparethemarket.com have suggested Scottish households are paying more for their energy bills in comparison to England and Wales.
Scots are paying on average £1651 per year, whilst people in England pay £1554 per year and Wales £1525.
The highest bills in the UK were found in Shetland and Orkney, with bills there costing households £2642 and £2504 respectively.
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