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BILL BLOW Energy bills could jump by £100 a year despite government cap on prices

The increase comes despite the upcoming introduction of the government’s new price cap in December, which promises to keep costs under control.

Energy regulator, Ofgem, has already signed off a £47 a year increase in its energy safeguard tariff for vulnerable consumers this coming winter.

But energy analyst Cornwall Insight is predicting that both tariff caps could rise by another £50 to £55.

This means that by April next year, we could be paying £100 more on our bills.

Gareth Miller, chief executive of Cornwall Insight said: “Household energy prices are set to continue to rise despite Ofgem’s safeguard tariff or the government’s default price cap.

“Only if wholesale costs fall sharply will the pressure abate.”

Why prices are continuing to rise

Analysts have regularly warned that Ofgem’s price caps will do little to stop energy bill increases.

This is because the level the cap is set at depends on factors such as wholesale prices. As long as these continue to rise, our bills will too.

Stephen Murray, energy expert at comparison website MoneySuperMarket explained: “The price of standard variable tariffs has risen by around £140 on average (from the big six) since the policy announcement of an energy price cap by the government in May 2017.