The rising costs of energy in the UK is becoming increasingly concerning and in recent months has captured the attention of the public, journalists and government officials alike. Households are experiencing sharp rises in their energy bills, with the demand increasing exponentially. Many people are being forced to consider their domestic energy storage and usage, as well as adapting their lifestyle to cope with these increases.
The significant increase of wholesale energy prices began in the second half of 2021, yet the energy price cap ensured many consumers were protected from these rising costs. However, in April 2022 the energy price cap increased by 54%, as well as further large increases in wholesale prices following Russia’s invasion of Ukraine. Raising the price cap to 54% meant that default tariffs increased by £693 per year, with prepayment customers seeing an increase of £708.
There are no signs that these increases will slow down, as wholesale prices continue to rise and the energy price cap is looking likely to be raised higher and higher. Cornwall Insights have predicted the energy price cap to remain above £3,000 a year until at least 2024. This is devastating news for many families and households throughout the UK, with the average bill forecasted to be over £300 a month in Summer 2023.