London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Energy bills expected to hit £4,200 in January, according to dire new forecast

Energy bills expected to hit £4,200 in January, according to dire new forecast

Dr Craig Lowrey, principal consultant at Cornwall Insight, says it is time to consider the energy cap's place, adding: "Right now, the current price cap is not working for consumers, suppliers, or the economy."

Energy bills are expected to rise even further this winter than previously thought, according to the latest forecast from energy consultancy Cornwall Insight.

Bills are now expected to reach approximately £3,582 a year for the average household from October - up from the £3,359 predicted earlier this month. That compares to the price cap last October of £1,277.

From January, the amount is expected to hit £4,266 before continuing to rise in April to £4,427 - the previous forecast was for £3,729 in April.


This October's price cap will be announced by energy regulator Ofgem on 26 August.

Cornwall insight said it had increased its forecast due to the continuing rise in wholesale prices and an expected change in how the energy price cap is calculated.

Dr Craig Lowrey, principal consultant at Cornwall Insight, described the increase of more than £650 in the January prediction as a "fresh shock".

"The cost of living crisis was already top of the news agenda as more and more people face fuel poverty, this will only compound the concerns."

He said the change in how the price cap is calculated was necessary to prevent suppliers going bust, but added: "Rather than critiquing the methodology of the cap, it may be time to consider the cap's place altogether.

"After all, if it is not controlling consumer prices, and is damaging suppliers' business models, we must wonder if it is fit for purpose - especially in these times of unprecedented energy market conditions.

"It is essential that the government use our predictions to spur on a review of the support package being offered to consumers.

"If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now."

He added: "Right now, the current price cap is not working for consumers, suppliers, or the economy."

Justina Miltienyte, head of policy at Uswitch.com, said: "Every week brings more bad news about how high the price cap is likely to soar, and these latest suggestions must stir the government to act now before it's too late.

"The energy bill support needs to be urgently reviewed.

"The new predictions will leave a lot of people worried about how they are going to afford their bills this winter and beyond, based on the sky-high predictions through to next October. Households desperately need to know that sufficient financial support will be provided.

"If you are behind on your bill payments, or your energy account is going into debt, speak to your provider as soon as possible.

"They should be able to help you find a solution, such as working out a more affordable payment plan. You may also find you are eligible for additional support such as hardship funds and other energy help schemes."

Newsletter

Related Articles

0:00
0:00
Close
UK Prison Officer Sentenced for Inappropriate Conduct with Inmate
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
×