Another rise in energy bills set to be announced this week

Experts say another rise in energy bills will be announced this week before coming into force just after Christmas. Cornwall Insight has announced its final forecast for the January price cap. For a typical dual fuel household, it now predicts the January price cap to be £1,736 per annum.

This will be a rise of 1% from the current price cap which was set at £1,717 per year for a typical consumer. Ofgem will announce the January cap on Friday, November 22.

Given the price cap rise in October, many will have been hoping to see a fall in the cap for January. Cornwall Insight says energy prices will stay high thanks to 'geopolitical tensions, maintenance on Norwegian gas infrastructure and weather disruptions'. Looking further ahead, it forecasts the cap will drop slightly in April 2025 and again in October 2025.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “Our final price cap forecast for January indicates, as expected, bills will remain largely unchanged from October. Supply concerns have kept the market as volatile as earlier in the year, and additional charges have remained relatively stable, so prices have stayed flat. While we may have seen this coming, the news that prices will not drop from the rises in the Autumn will still be disappointing to many as we move into the colder months.

“Fuel poverty has occupied political agendas for years, with little long-term progress. This winter, millions of households say they will not heat their homes to recommended temperatures, risking serious health consequences. With it being widely accepted that high prices are here to stay, we need to see action. Options like social tariffs, adjustments to price caps, benefit restructuring, or other targeted support for vulnerable households must be seriously considered.

“Long-term, our transition away from the volatile global wholesale market toward sustainable, home-produced renewables can help to secure our energy future. Although the transition does require upfront investment, it promises lower bills down the line. The government needs to keep momentum on the transition while acknowledging that immediate support is essential for those struggling now. Inaction is a choice to leave people in the cold."