Bad news for millions of Brits as experts warn of rising energy bills

Households hoping for a reduction in energy bills in January are likely to be disappointed, as the latest forecast indicates a price increase at the start of next year.

According to energy consultancy Cornwall Insight, Ofgem is expected to announce on Friday that the typical household's energy bill will rise by 1% to £1,736 from £1,717, effective January 1.

This reverses Cornwall Insight's previous prediction of a 1% decrease to £1,697. The consultancy attributes the revised forecast to "forecasts show that prices will be staying relatively high for the remainder of winter".

However, prices are still expected to decrease slightly in the second and fourth quarters of next year. Craig Lowrey, principal consultant at Cornwall Insight, said: "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."

He added: "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."

Lowrey emphasized the need for action, suggesting that options like social tariffs, adjustments to price caps, benefit restructuring, or targeted support for vulnerable households must be seriously considered.

Last week a poll suggested millions of people plan to cut back on showers and baths to afford rising energy costs over winter, a survey suggests. The poll for National Debtline found 45% of people are heading into the winter period worried about their finances, with one in four reporting this is having a negative effect on their health and one in five (22%) saying they are regularly losing sleep over money concerns.

Latest Ofgem figures show energy arrears now stand at a record £3.7bn. The average household energy bill increased by £149 a year from October 1 when the industry regulator raised its price cap to £1,717 for a typical dual fuel household in England, Scotland and Wales.