The predictions for the Default Tariff Cap in this piece are out of date please click HERE to find our most up to date forecasts.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight said:
“The announcement that the government will maintain the Energy Price Guarantee (EPG) at £2,500 has provided much-needed clarity for energy suppliers and no doubt relief for the many households who rely on the scheme to safeguard their finances from the volatile energy market. While the government’s decision will come at an estimated additional cost of £2.6bn1 for the three months to July, Default Tariff Cap (price cap) predictions indicate that the EPG costs will be short-lived, as average bills are expected to drop well below £2,500 in the latter half of the year. It’s a small price to pay to protect already hard-hit households.”
Figure 1: Cornwall Insight’s Default tariff cap forecasts for a typical household