Not as bad as initially thought
Leading forecaster Cornwall Insight has revealed the level of the rise of energy price cap this summer.
According to the forecaster, the energy price cap is expected to rise in July of this year.
The current £1,641 cap is in place until 30 June, however, it is expected to rise to £1,836 two months later.
In spite of the predicted rise of £195, it is £25 lower than the forecaster’s previous prediction for the cap.
Earlier in April, it predicted that it would rise to £1,861 in the summer, which would have meant an increase of £220.
Originally it thought the cap would hit £1,973, so this is the second time it has reduced its forecast for July.
What is the energy price cap?
It is the typical sum most households pay for gas and electricity when paying by direct debit, and it sets the maximum amount suppliers can charge you for each unit of energy and the daily standing charge.
The more gas and electricity you use, the more you pay, so your actual annual bill will be different depending on how much energy you use.
Following the start of the Iran war, wholesale gas prices surged due to key shipping lanes being disrupted and oil and gas facilities in the Gulf being damaged.
However, as they started to fall in recent days, it means that the fears of a big hike in energy prices in Britain to ease.
On 27 May, the energy regulator Ofgem will make the official announcement of the 1 July to 30 September price cap.
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