Energy price cap set to remain more than £1,000 higher than pre-pandemic average
The energy price cap is set to remain more than £1,000 higher than the average bill before the COVID pandemic, according to a closely-watched forecast.
Ahead of the industry regulator’s determination on the price cap level due next week, energy research specialist Cornwall Insight said it saw the cap for a typical household at the equivalent of £2,053 per year from July-September.
That was down from the £3,280 level set by Ofgem for March-June and reflected continuing falls in wholesale energy costs, particularly for gas, over the year to date which accelerated as winter temperatures gave way.
The price cap does not currently apply due to help for energy bills from the government.
However, the Energy Price Guarantee (EPG), which limits a typical household’s energy bill to £2,500 equivalent per year, concludes at the end of June.
Household bills will revert to the price cap from then.
The Cornwall Insight modelling shows a decrease of £1,227 from the April cap level but experts say the outlook for prices remains clouded by the effects of the war in Ukraine and domestic energy security concerns across Europe.
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“Despite the cap falling from the sky-high prices of the past two years, the figure remains over £1,000 per year more than the price cap levels seen prior to the pandemic”, the report said.
“We do not currently expect bills to return to pre-2020 levels before the end of the decade at the earliest.
“However, we hope to see the reappearance of more competitive fixed-rate energy tariffs as prices begin to stabilise, providing consumers with additional options to manage their energy costs.
“Prices remain subject to wholesale energy market volatility, and our reliance on energy imports (during the winter months) means geopolitical incidents could still have a significant impact on energy prices.”
Current modelling suggests the cap from October would rise but only by a token amount compared to the bill shocks of the past year.
Energy costs have been the single biggest headache for the global economy since Russia’s invasion of Ukraine last year exacerbated existing upwards pressure on global oil and gas prices.
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They have fed their way down supply chains to drive up wider manufacturing and transport costs, leaving businesses and households at the mercy of rising bills across the board.
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Dr Craig Lowrey, principal consultant at Cornwall Insight said of the expected energy bills ahead: “Under these predictions, an average consumer would see bills drop by around £450 compared to the existing levels of the EPG, with bills currently predicted to stay relatively stable over the next nine months.
“As many people continue to suffer from the cost-of-living crisis, this will hopefully bring some cautious optimism that the era of exceptionally high energy bills is behind us.”
The Bishop of Liverpool has announced his retirement days after facing allegations of misconduct from two women, including another bishop.
One woman said the Right Reverend Dr John Perumbalath kissed her without consent and groped her, while the second accused him of sexual harassment.
The bishop has vehemently denied the allegations – and in his retirement letter, published online on Thursday, he reiterated his denial.
The letter, shared by the Diocese of Liverpool, read: “Having sought the permission of His Majesty the King, I have today taken the decision to retire from active ministry in the Church of England.”
Addressing the accusations, he continued: “Since those allegations were made I have consistently maintained that I have not done anything wrong and continue to do so.
“I do not wish this story to become a distraction for this incredible diocese and its people whom it has been an honour and joy to serve,” the bishop says in his letter.
“This is not a resignation occasioned by fault or by any admission of liability.”
The exact date for when the bishop’s role will formally end is yet to be decided, but he is stepping back from ministering and leading the diocese as of Thursday.
The letter continued: “I have taken this decision for my own well-being, my family and the best interests of the Diocese.
“I have informed the Archbishop of York of my decision and I understand he will put in place the necessary arrangements for episcopal oversight of the diocese for the remainder of my time here and during the vacancy.”
Bishop Perumbalath has insisted his retirement is not an admission of guilt
The Archbishop of York Stephen Cottrell – who has faced calls to resign over separate safeguarding failures – said: “I respect his decision and thank him for his ministry.”
“My thoughts and prayers continue to be with all those who have been affected by this situation,” he continued. “I am committed to ensuring stability during this time of transition and will be putting the necessary arrangements in place to provide episcopal oversight for the diocese.”
An acting bishop will be announced in the coming days.
The Archbishop of York (pictured) has welcomed the decision – which comes at a tumultuous time for the Church of England
The diocese – which on Wednesday pressured the bishop to step aside – said in a statement: “We acknowledge his decision in taking this step for the good of the Diocese of Liverpool.
“This is a deeply painful situation, and we hold all concerned in our prayers.”
The misconduct allegations were reported by Channel 4 earlier this week but the first dates back to 2023, the Church of England confirmed.
It said: “The complaint was looked into according to statutory safeguarding guidance… and an independent risk assessment undertaken.
“This process concluded that there were no ongoing safeguarding concerns, but a learning outcome was identified with which the bishop fully engaged.”
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A “further disclosure was made by another woman” shortly after, the Church said. This was “assessed not to be a safeguarding matter but a matter of alleged misconduct,” it added.
Bishop Perumbalath’s resignation comes at a tumultuous time for the Church of England, which has recently seen Justin Welby quit as Archbishop of Canterbury over the handling of another case.
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