Energy price cap to increase in New Year in cost of living blow to Britons
Farage: Ed Miliband's energy policies will do more damage than immigration …
GB NEWS
Energy bills for the average household are predicted to rise again in the New Year, according to the latest forecasts from a leading energy supplier.
EDF estimates Ofgem's energy price cap will jump to £1,738, from its current level of £1,717, for January to March 2025.
On its website, the firm published the following statement: "For January to March, there are only a few days left before the cap is set, therefore any further changes in wholesale prices are only likely to have a small impact on the cap level.
"We’re forecasting a rise from the current cap to around £1,738. This is due to the price of gas and electricity going up in the first three months of the year, when demand is highest due to colder weather.
"From April 2025 there's less certainty, as wholesale prices have a longer time period to change and several non-energy costs covering the wider energy system will change.
"Non-energy costs include paying for transmission and distribution networks, low carbon subsidies, and balancing electricity demand and supply."
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This latest prediction from EDF comes after Cornwall insights' revealed its last forecast before Ofgem confirms the energy price cap for next quarter.
The market analysis company projects a one per cent increase that will push typical household costs to £1,736 per year.
Households have been forced to contend with record high gas and electricity costs amid the ongoing cost of living crisis.
While bills remain are set to remain lower than those recorded during the height of the Ukraine-Russia conflict, households are being urged to lock in cheaper deals before its too late
David Edmonds, the head of Pricing and Valuations in Wholesale Market Services at EDF, shared how much more families are likely to pay over the next quarter.
Edmonds said: "We have seen greater wholesale market volatility since last week’s prediction after gas markets rose significantly due to the cold weather and concerns over gas supplies from Russia.
"That coupled with conflicts in the Middle East and between Russia and Ukraine, as well as the uncertainty the American election brings to global gas prices are factors in the predicted rise of £21 to £1,738."
Under the regulator's price cap, energy supplier are limited on how much they can charge per unit of energy and standing charge for consumers on a standard variable tariff.
LATEST DEVELOPMENTS:
The energy supplier has warned the energy price cap is likely to rise in the New Year
GETTYIt should be noted that this is not an overall cap on how much people pay. If exceeds the amount covered by the price cap, they will pay more towards their supplier.
The new Labour Government has come under fire for effectively axing energy bill support for households going into winter.
Earlier this year, Chancellor Rachel Reeves announced Winter Fuel Payments will be means-tested going forward.
As such, pensioners will now need to claim Pension Credit and other means-tested benefits from the Department for Work and Pensions (DWP) to be eligible.
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