Forecasts for the 2024 price cap have increased due to heightened instability in the worldwide wholesale energy market.
Latest predictions by energy consultancy Cornwall Insight suggest that the average dual fuel consumer’s energy bill for January will be £1,923 per year, with a slight rise to £1,929 by April 2024.
Initially projected to decline below the current £1,834 typical bill rate for the rest of 2024, recent forecasts now indicate that the energy price cap is expected to remain above the current level until at least the end of the year.
Global events, including disruptions to the Finnish Balticconnector, the Israel-Hamas conflict and labour disputes at gas production facilities in Australia, have collectively led to a 5-6% (£91-£110) increase in price cap predictions for April, July, and October since September.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight said: “The jump in price cap predictions since September has once again highlighted the vulnerability of UK energy prices – and customer bills – to geopolitical events.
“The Russian invasion of Ukraine demonstrated there is a delicate balance in the global energy market which can easily be disrupted by unexpected events, it looks as though the current situation is repeating that pattern.”
