Richard Neudegg, director of regulation at Uswitch.com, said: “This prediction is a stark reminder of why relying on the price cap leaves customers exposed to global events.
“While it’s still far too early to say with certainty what the price cap will be in July, if these predictions ring true, the majority of households could see a significant jump in household energy bills, driven by the situation in the Middle East.
“Energy markets remain sensitive to major events, especially when they involve key gas transport routes.
“These early forecasts come only days after Ofgem announced that the price cap will fall by £117 for the average household in April, so many households could feel whiplash with the potential changing direction of bills.
“This forecast is a grim reminder of the pitfalls of a price cap tariff - as it is reviewed every three months, shocks in the market are passed onto standard tariffs quickly.
“Customers currently on fixed deals are protected, as their rates are locked in for the duration of their fix, but customers on standard tariffs dictated by the price cap are subject to Ofgem’s quarterly review.
“At the moment, there are still fairly-priced fixed deals available that are below these predictions, and could be a reasonable option for households seeking stability on their energy rates. Those who switch to a fixed deal will also receive a reduction to their unit rates once the Government’s energy bill cuts take place from 1 April.
“We encourage households to run a comparison to assess their options and consider whether to lock in a fixed rate now.”
ENDS
