Chart of the week | Default tariff cap set to rise by at least £100 for coming winter

The default tariff price cap for a typical dual fuel direct debit customer looks set to increase by over £100 for the Winter 2021-22 period, according to an initial assessment from Cornwall Insight’s bi-annual tariff cap predictor. The latest forecast for the cap indicates that it will increase to around £1,250 for the coming season, which would represent the second successive seasonal increase in the cap following the rise recorded for Summer 2021 that saw an increase to £1,138. 

The primary reason for the expected increase comes from the wholesale market, where prices have seen a considerable rise to reach some of the highest levels seen since the extreme weather conditions caused by the “Beast from the East” in early 2018.

Dr Craig Lowrey

Dr Craig Lowrey

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