Cornwall Insight, a leading energy market analyst, has predicted that energy bills will rise next year. The regulator’s price cap is set quarterly by Ofgem, based on wholesale energy prices.According to Cornwall Insight, the regulator’s price cap is set quarterly by Ofgem, based on wholesale energy prices.
According to an analyst, the cap is expected to rise from its current level of £1,834 a year to £1,923 a year in January.The cap is expected to rise to £1,929 per year in April, fall to approximately £1,880 in July, and then increase again to around £1,917 in October, keeping it above its current level throughout 2024.
Cornwall Insight’s new forecasts take into consideration the market’s volatility caused by the Israel-Hamas conflict, industrial action at liquid natural gas facilities in Australia, and damage to Finland’s Balticconnector gas pipeline.
Dr Craig Lowrey, principal consultant at Cornwall Insight, has highlighted the vulnerability of UK energy prices and customer bills to geopolitical events. According to an expert, the recent increase in price cap predictions since September has once again exposed the vulnerability of UK energy prices and customer bills to geopolitical events. The recent Russian invasion of Ukraine demonstrated the delicate balance in the global energy market which can easily be disrupted by unexpected events.
According to Cornwall Insight, the regulator’s price cap is set quarterly by Ofgem, based on wholesale energy prices. The cap is expected to increase from £1,834 per year to £1,923 per year in January, according to the analyst’s prediction.This is steeper than the rise to £1,898 a year it predicted in September .The analyst forecasts that the cap will rise to £1,929 a year in April, fall to around £1,880 in July, and rise again to around £1,917 in October, keeping it above its current level throughout 2024.
The Demand Flexibility Service allows households and businesses to earn rewards for shifting electricity usage outside of peak demand hours, thereby helping the Electricity System Operator (ESO) manage supply through periods when margins are tight.
