Energy bills to remain sky-high for years, warn experts

Energy bills in the UK are set to remain at sky-high prices for years, a new analysis has shown, as many Britons continue to struggle amid cost of living crisis and decades-high inflation.

Analysis by Cornwall Insight’s found the generally held view that energy prices will go down very soon sharply after the big increases this year was no longer accurate. They said prices will not fall until 2024, says the analyst.

According to the analyst, energy bills will stay well above £2,000 for two more years. The firm also warned that prolonged high prices threaten the chancellor Rishi Sunak’s loan scheme to help households cope with sky-high gas prices.

The analysis comes amid the tightest squeeze on incomes since records began.

The firm, which predicted the recent 54 percent rise in the cap on average energy bills to £1,971, said it had increased its forecasts for upcoming changes to the ceiling, which is determined by the energy regulator, Ofgem.

It warned that prices staying higher for longer would undermine Sunak’s plan to ease the pressure on household finances by giving bill payers a one-off £200 discount on bills, paid back in £40 instalments over five years.

The statement came a few days after the Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) inflation has risen by 7 percent in the year to March, up from 6.2 percent in February, touching a highest point in 30 years.

The inflation crisis started before the war in Ukraine, but it has turned a bad situation into a worse one as the sky-high energy prices in Europe have been further impacted by the sanctions placed on Russia and the Kremlin’s retaliatory measures.

Ukraine and Russia are also the world’s largest producers of sunflower oil, which has led to a sharp increase in the prices, which in turn is driving up the price of food.

Lamb that is eaten across the country this weekend will cost around 16 percent more than last Easter.