The price cap will beyond £2255 in October
The price cap will beyond £2255 in October: According to a recent research, the energy price ceiling might rise as high as £2,255 in October.
According to Cornwall Insight, the price cap, which limits the default energy rates, will rise twice this year.
There will be one in April, when the yearly limit for an average household on a basic variable tariff will climb by 17% above the present price cap, and one in October, when it will soar by 77% from £1,277.
According to the energy market consultant, wholesale markets must be reformed in order to be future-proofed against future fluctuating costs.
It also advocates for the “fairest path” of growing costs over time, rather than “quick remedies” that may not ensure recovery from high energy prices.
“It is not helpful for the government to keep alluding to the Default Tariff Cap when questioned on what action it is doing,” said Gareth Miller, Chief Executive Officer of Cornwall Insight.
“The cap will not protect consumers from increases in gas and power prices in the long run. Certainly, the cap has delayed the burden of these costs to consumers, but they will face them anyway as the default tariff cap rises in a lag to the rise in gas and power prices.”
The price cap will beyond £2255 in October: