Global Markets
Home›Global Markets›Trade & Tariffs›UK energy bills forecast to rise most in four years
UK energy bills forecast to rise most in four years
A typical annual gas and electricity bill is forecast to increase 16% to £1,999 in January, driven by a rise under Ofgem's October price cap.
UK household energy bills are forecast to jump in January, with a typical annual gas and electricity bill expected to rise by £276, according to figures shared with the BBC. The predicted 16.0% increase would be the biggest rise in bills for four years.
The forecast from consultancy Cornwall Insight comes a day before prices increase under Ofgem's October price cap, adding pressure on the government for support for households that may struggle to pay. About 20 million households on variable tariffs set by the cap are expected to see a 4.0% increase on Thursday, which the BBC says would add about £60 per year, or about £5 per month, taking the annual bill to £1,723 for the typical household using both electricity and gas and paying by direct debit.
The BBC also reports that EDF supplier boss Simone Rossi warned the UK is “walking into a second energy crisis” and called for extending a VAT cut on electricity that is due to start on Thursday.