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.

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