Analysts Cornwall Insight are predicting the energy price cap will rise to £1,762 a year for a typical dual fuel consumer.
This would represent a 1% increase from January’s price cap of £1,738 announced in November.
Cornwall Insight stated the predicted rise reflects the movement in the wholesale market, where economic and geopolitical factors affecting the global market have raised predictions for household bills.
They believe continued uncertainty regarding the Russia-Ukraine conflict and its implications for gas supplies to Europe is now occurring against the backdrop of an impending second Donald Trump presidency, in addition to question marks over effects on economic growth in general.
The analysis also shows new information published on energy network charges and other non-wholesale costs are set to compounding the increase in the underlying costs of electricity and gas.
In addition, there is also the prospect of reforms adding extra costs to the cap, which would represent at least another £20 on annual bills.
There is some good news as they predict a drop in energy prices by July.
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