Responding to the announcement from Ofgem this morning that the Price Cap will fall below £2,000 for the first time since April 2022, reducing from £2,074 in Q3 2023, to £1,923 [i] from October 2023, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG, said:
“A further drop in the price cap will bring some relief ahead of winter, but the reality is that prices remain higher than the long-term average. According to our latest consumer pulse polling utility bills are still the biggest deterrent to spending and with no Government support for the majority of households this winter, many will still be feeling concerned.
“As we head into the colder winter months, uncertainty remains around the outlook and many will be hoping for a mild winter. Current estimates are that prices could increase again in January and will remain at these higher levels for the foreseeable future. The Government and Ofgem will be hoping that there are no further supply shocks over the winter as already stretched household budgets will struggle to cope.”
