Energy expert Cornwall Insight has predicted that Ofgem’s price cap will rise to £1,785 in April. The company monitors wholesale energy prices and uses them to estimate household energy costs.
The price cap is imposed on unit rates, so the £1,785 figure is based on average statistics for a typical UK household. The news indicates that, unfortunately, energy costs are unlikely to return the levels before Russia’s invasion of Ukraine. Households can, however, opt for different tariffs. Fixed-price tariffs, for example, are particularly popular because they prevent against price spikes. Customers can also go for variable deals whereby prices can vary in as little as a half-hour window.
Cornwall Insight explained its methodology:
“We apply the Ofgem methodology with the current wholesale market prices for gas and electricity along with our own view of the non-wholesale elements of the bill. These are then applied to the identified TDCVs for gas and electricity to calculate the bill for a typical domestic customer.”
It added that its figure was based on the national average after calculating the numbers for each region. With energy prices projected to increase, it makes increasingly more sense to make efficiency improvements in your household. The sooner you make them, the sooner you’ll start saving money.
Good insulation will obviously help keep your home warm, but Xgas can also send heating engineers to Chester and other locations in the Wrexham area. Upgrading to a modern boiler can also save considerable energy, and thermostatic radiator valves can enable you to heat your home more smartly.
