Households are set to learn that their energy bills will rise again from January as hopes for relief from the cost-of-living crisis are put on hold.
Ofgem will announce its latest price cap on Thursday, with energy consultancy Cornwall Insight predicting it will increase from the current £1,834 for a typical dual fuel household to £1,931 – a 5% jump to take effect from January to March.
The forecasts suggest that the typical bill will then fall to £1,853 from the start of April, but will not drop below today’s level until July next year.
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Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “An unstable wholesale energy market, coupled with the UK’s reliance on energy imports, makes it inevitable that energy bills will rise from current levels.
“This leaves households facing yet another winter with bills hundreds of pounds higher than pre-pandemic levels, and affordable fixed deals few and far between.”
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“While we continue to advocate for immediate targeted support for vulnerable consumers, it is evident that the only enduring solution lies in transitioning the UK away from the influence of global energy prices towards sustainable, domestically sourced energy.”
