TYPICAL household energy bills could reach £4,347 a year from April after the government said it would scale back support, an analyst has estimated.
Cornwall Insight’s forecast comes after the chancellor said the energy bill help, which had been due to last for two years, would be cut in April.
The government said the most vulnerable would continue to be protected from soaring energy prices.
The forecasts could change depending on movements in wholesale energy prices.
The new Chancellor, Jeremy Hunt, announced the change to the energy price support as part of a package of measures designed to save money after the government’s mini-budget left a big projected hole in the public finances.
On Monday, he said, “it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices”.
The government’s Energy Price Guarantee, which limits the price that suppliers can charge for each unit of energy, was originally put in place for two years from 1 October.
Now it will only be in place for six months, covering this winter, with the Treasury reviewing the support given from April.
Under the current cap consumers still pay for the gas and electricity they use. A typical household – one that uses 12,000 kWh (kilowatt hours) of gas a year and 2,900 kWh of electricity – currently faces an annual bill of £2,500. That is up from £1,277 last winter.
The details of support from April will be decided following a review, Mr Hunt said. He said those on lower incomes would be supported and there will be incentives to be more energy efficient.
Predictions from Cornwall Insight suggest that, for households that do not receive any support, a typical annual energy bill could be £4,347 in the spring, dropping to £3,722 next winter.