Energy bills are set to increase again in January, with households across the UK facing a £19 hike in their gas and electricity bills. This announcement marks the second consecutive winter-time increase to the price cap, affecting millions of families in the country. The rise is expected to be revealed by the regulator, Ofgem, with the typical household’s energy bill set to jump by 1% to £1,736 from the current £1,717.
Earlier predictions had suggested a 1% fall in energy prices, but after a 10% increase in October, Cornwall Insight revised their forecast. The rise in prices comes as a blow to many, especially as 10 million pensioners will miss out on winter fuel payments this year, amounting to up to £300 for some. The energy consultancy firm also anticipates a slight decrease in prices during the second and fourth quarters of the next year.
The energy price cap, introduced by the Government in January 2019, sets a maximum price that energy suppliers can charge consumers for each kilowatt hour of energy used. Despite the cap being lower than during the peak of the energy crisis fuelled by geopolitical events, prices remain sensitive to global occurrences. Cornwall Insight emphasised the need for long-term solutions to address the ongoing challenges in the energy market.
Calls for government intervention to protect vulnerable households and ensure energy supply for the long term have grown louder. Various options, including social tariffs, adjustments to price caps, and targeted support for those in need, have been proposed. Charities have expressed concerns over the impact of rising energy prices on disabled individuals, highlighting the urgent need for discounted energy bills for this demographic.
As Ofgem ponders the future of price protection, discussions are ongoing regarding the suitability of the price cap and a potential ban on acquisition tariffs. With the current cold spell already impacting vulnerable groups, such as disabled people who rely on additional heating, the need for immediate action to address rising energy costs has become more pressing than ever.
In conclusion, the latest increase in energy bills will undoubtedly put further strain on households already grappling with rising living costs. As the cost of energy continues to fluctuate, it is imperative for policymakers to implement measures that provide relief to those most affected by these price hikes. With global events influencing energy prices, finding sustainable solutions to mitigate the impact on consumers remains a top priority.