Energy bills are set to rise again next year in a blow for millions of households.
This predicted price rise would mark the third consecutive hike for energy prices after Ofgem raised its price cap in October.
Energy bills are expected to rise for the third consecutive[/caption]
The energy regulator also confirmed last month the cost of yearly energy bills will rise by around £21 to £1,738 come January.
And now experts at Cornwall Insights forecast the average dual fuel bill for those not on a fixed deal will rise from £1,738 to £1,762 in April.
Analysts at the firm said “continued uncertainty” regarding the future of the Russia-Ukraine conflict could impact wholesale prices.
They also pointed to Donald Trump‘s impending presidency in the USA, which could “impact gas exports from America”.
Craig Lowrey, Principal Consultant at Cornwall Insight, said the market is “unlikely” to lower bills and fuel poverty will “continue to the an issue.”
“There are a lot of unknowns, and while significant rises in price are currently unlikely, the scale of any increases will depend on how the market and the reforms unfold.”
It’s worth bearing in mind that these are just predictions and Ofgem will confirm what April’s price rise is on February 25 2025.
You should also not based on Cornwall Insight’s predictions, your energy bills may not rise to £1,738 in January.
The Ofgem price cap simply sets a limit on the maximum amount suppliers can charge customers per unit of gas and electricity on standard variable tariffs (SVRs), around 28million households.
So if you use less energy you won’t see your bills rise to this figure but the amount you are charged for your energy will still go up.
The price cap is updated every three months and is based on average wholesale prices in the months leading up to the change,
If you are worried about bills rising in the new year, l then you may get greater peace of mind by fixing your energy deal now.
Fixed deals see you charged the same gas and electricity rates throughout the contract term.
Ben Gallizzi, energy expert at Uswitch.com, said: “There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save.
“Right now, the average household could save up to £112 per year against the current price cap by switching to a twelve-month fixed deal.”
How to get help with your energy bills
If you are worried about paying your energy bills this winter it is worth being aware of a number of support measures which are available.
For starters, the government has begun rolling out its Cold Weather Payment, which gives people £25 for every seven day period of cold weather.
Many gas and energy suppliers offer grants and schemes for customers who are struggling.
For example, British Gas has a fund open to pre-payment meter and credit customers who have found themselves in debt worth up to £1,700.
The Individual and Families Fund was first set up in 2021 to help households struggling with energy debt.
This scheme’s support is available to British Gas and non-British Gas customers.
You might be able to get help with essential costs from your local council through a programme called the Household Support Fund (HSF).
The funding is designed to help people who are vulnerable or can’t afford to pay for necessities like energy bills, water bills, and food.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
