Analysts price cap predictions - Cornwall Insights August 2022
Updated: Aug 16, 2022
Let's talk energy.
Every bill payer, whether they manage a home, business or both, has been affected, is about to be affected or has heard of the energy price increases.
The rates at which the energy market is soaring is frightening. Towards the end of last year, price predictions for variable rates were at 32% in April. Many thought that this wouldn't happen, or it would be less than 32%. Fast forward a few months later - and the predictions got higher. The cap prediction increased to around 42% around a month later, then 51% - until we reached February and we were warned it would be 54%. 54% in April is where we landed and unfortunately, there were many of us who didn't fix into a deal which would have protected us from this, either because: A) It was slightly more expensive than a variable at the time, or B) Because we didn't believe that this was really going to hit that hard. The predictions seem to get higher and higher, the nearer we draw towards the next increase. Each new tariff that's being released on a fixed deal, is more expensive than the last. If you have been reading that it's good to get into a fixed deal, but THINK it's more expensive now, then do the maths. We are now being told, by January, variable rates are going to be 100% higher than they are right now. Take what you're on right now, and double it - then you'll see what the future holds. The photo below (Cornwall insights) shows what bills are expected to reach in Janary next year - for an AVERAGE user.
The energy price comparison sites aren't quite what they used to be. Prices have soared so high, that many looking at them are in disbelief and some are even staying on a variable rate (which is normally more expensive, with zero protection against rises) because they are afraid of what's coming. The reality is, the longer you stay on a variable rate, the more expensive it will be over the next 6-12 months. The harsh reality is, some of the available & cheapest deals aren't on comparison sites or accessible to the general public. If you would like to speak to someone about protecting yourself against coming rises, and reducing your home & business costs, please get in touch with us.