Proactive Investors - Ofgem’s price cap will likely end a brief stint below the £2,000 mark in January, prompting warnings that low prices are now a thing of the past.
Energy prices will likely climb to the annual equivalent of £2,083 in mid-winter, up from October’s cap of £1,923, according to Investec analysts.
Though this will be lower than the £4,279 cap set by Ofgem last January, Investec’s Martin Young said the price of energy would remain roughly double that of 2021.
“We have obviously come down from the really horrendous price cap levels,” he said, but this is “considerably above where prices were previously”.
“As a society, we are going to have to get used to the fact that the era of cheap energy is not coming back any time soon.”
Ofgem’s cap determines how much households pay per unit of gas and electricity, and this is then displayed as the figure an average UK household would pay annually under the prices.