Energy bills ‘will rise by £73 to £1996 per year’ in January | UK News

A typical household’s yearly energy bill will rise by £73 in January, according to new forecasts.

Starting in October, the average household is expected to pay the equivalent of £1,923 a year until December.

This amounts to a fall compared to current levels, with annual bills currently at a typical rate of £2,074, and follows a downward trend in the price cap this year.

But analysts at consultancy firm Cornwall Insight say bills will rise again to £1,996 at the start of 2024.

This is based on a predicted rise of around 3.5% in the energy price cap forced by increases in wholesale energy prices.

Future changes in the price cap are not set in stone, as the cap is based on variable factors such as the amount of energy people are using and the costs faced by energy suppliers.

The cap is designed to limit the amount suppliers can charge for each unit of energy consumed.

Bills are still much higher than in 2021, and some government support available last winter has been withdrawn.

But they are forecast to keep falling steadily throughout next year, reaching around £1,922 by next winter.

The figures are based on a definition of average energy use which is being phased out.

Under the new definition, the forecast average yearly bill will be around a hundred pounds less – for example, £1,898 in January.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight said that while it is ‘disappointing’ to see the trend of falling energy bills stall, ‘given the movements in the wholesale market of late it is not wholly unexpected’.

He added: ‘While the rise is small, it shows we cannot just assume prices will continue their fall and eventually reach pre-pandemic levels.

‘Policies need to be put in place to deal with the possible situation that high energy prices have become the new normal.

He warned that government support could ‘ease the burden on vulnerable households’ but ‘cannot overcome the effects of a volatile international energy market on bills’.

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