Energy Costs In UK Still Double The Historic Average

Energy Costs In UK Still Double The Historic Average
Spread the love

Electricity bills are set to remain double the historic average despite expected reductions in the coming months.

Figures today from energy analysis consultancy Cornwall Insights show that the average costs for 2024 will be £113 per MWh – a £16 drop from the previous forecast.

This is largely due to Europe holding higher than expected natural gas reserves.

However despite the price fall, forecasts remain substantially higher than the £50 per MWh historic averages, with Europe’s dependence on international Liquefied natural gas (LNG) following sanctions on imports from Russia, cited as a key reason.

Prices are expected to drop back down below £100 per MWh in 2025.

Evelin Blom, a modeller at Cornwall Insight, said the cuts represented “much-needed good news for UK households”.

“While this relief is welcome, Great Britain’s consumers face a long road to truly affordable energy,” she added.

“The rise in electricity demand poses a significant hurdle, and without action, threatens to keep power bills elevated until the end of the decade and beyond.”

Figures from home energy provider Aira shared exclusively with City A.M. today, show that 65 per cent of Britons will likely keep heating lower during January, with seven per cent opting to keep it off completely.

The survey of 8,068 respondents also found that one in four will also take cash for their energy bills from their typical food spend and nearly the same number drawing on cash for leisure activities (24 per cent) and clothing (22 per cent).

Also this week, Ofgem issued a word of caution to suppliers it has cleared to resume the controversial and previously-banned practice of forced meter installations.

The watchdog said an extensive list of criteria had to be met before the suppliers could action the installation.

Octopus Energy said it would not be pursuing the practice, while a Scottish Power spokesperson confirmed that it will always be a “last resort”.

Share This Post

One Response to "Energy Costs In UK Still Double The Historic Average"

Post Comment