Cornwall Insight has unveiled its final forecast for the January to March (Q1) 2024 Default Tariff Cap, projecting a 5% rise to £1,931 for a typical dual fuel household.
This increase from the current cap of £1,834 is attributed to wholesale market volatility driven by geopolitical concerns, including disruptions to the Finnish Balticconnector, the Israel-Hamas conflict and industrial action in Australian gas production facilities.
While recent mild weather has led to a slight dip in gas prices, the forecast suggests that any impact on bills in 2024 may be limited.
The cap is expected to decrease after March 2024, although it will remain elevated compared to historical levels.
Looking ahead to the second 2024 cap period (April-June), Cornwall Insight anticipates an 8p per day increase in electricity standing charges, influenced by the ongoing reform of network charges.
This shift from per unit to per day charges means customers will incur these costs regardless of their actual consumption.
The official cap announcement by Ofgem is scheduled for 21st November.
