When will energy prices go down?

Millions of families have been wondering when will energy prices go down after months of sky-high bills and worries over how much our energy bills will cost.

Wholesale energy prices (the price that suppliers pay to buy the energy they sell to their customers) are very unlikely to go down in 2022 – in fact, they will almost definitely be going up. Russia’s invasion of Ukraine is largely to blame for this. This is because the conflict is pushing up global prices of commodities such as oil and gas.

The mismatch between supply and demand is also set to continue well into next year (this means that with low supply and high demand there will be still soaring prices) typical bills would be expected to be well above £4,000 during 2023. Some bills without the cap have seen up to 70p per kWh for electricity, which is the highest it’s ever been.

What help will there be with energy bills from April 2023?

In his emergency statement in October, the new chancellor Jeremy Hunt said there will be ‘targeted’ support on energy costs when the price guarantee ends. We do not yet know the details, but a review will consider how to support households and businesses with energy bills after April 2023.

The truth of the matter is that prices are very unlikely to drop in the near future or even over the next year. There are lots of complex situations going on around the world that all have an impact on the wholesale price of gas and electricity, and they are not going to change for the foreseeable future.

If you want to learn how to save money on electricity read our blog:

 https://www.trustelectricheating.co.uk/news/top_10_tips_to_save_money/

Tags: General Guides.