British Gas, Octopus, Eon, EDF and OVO customers sent dire 2025 warning

Households have been warned they will have to find more money to cover their bills from the start of the new year. Energy regulator Ofgem has confirmed gas and electricity costs will increase yet again from January, piling more strain on households.

It will mean the typical home having to pay an extra £21 a year. And there were grim warnings from experts who said "higher costs are here to stay".

Energy customers have been advised to consider switching to a fixed tariff to keep their bills as low as possible, particularly as any major decreases in costs appear to be a long way off. Alastair Douglas, CEO at TotallyMoney, said: "A warm home shouldn’t be considered a luxury, but it’s fast becoming that.

READ MORE: Households told £147 cost of living payments to enter bank accounts

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"Just as we’ve had the first cold snap of winter, we hear that energy bills will increase again in January, to £1,738 per year, and the forecast says that higher costs are here to stay. And although the Government has announced its new support scheme with the energy providers, there’s still no sign of a real long-term plan to support people with their bills. Which, if Ofgem is to stand by the claim that it's working ‘to protect energy consumers’, it really needs to do.

“That’s because the energy price cap is still in place, and simply put, it’s no longer fit to do the job it set out to do. And as a result, six million homes are in fuel poverty. Some may be eligible for support, but many more will struggle to stay warm and keep the lights on this winter.

“The Government and the regulator need to take a fresh and collaborative approach to make sure that nobody’s left out in the cold. Whether that means scrapping the 5% VAT rate on residential energy, so everybody can benefit, or introducing a future-proof solution for the most vulnerable, something needs to be done."