The forecast follows an already confirmed rise in household costs from October. Ofgem\u2019s price cap is set to increase by 4%, taking the typical dual-fuel bill from \u00a31,663 to \u00a31,723 a year, after a 13% rise in July. The January outlook would therefore add another increase for households entering the winter period.<\/p>\n\n\n\n
The expected January rise is linked to higher wholesale energy prices, particularly gas. According to Bloomberg Economics, European energy prices have increased since the war in Iran began in late February, disrupting oil and gas supplies from the Persian Gulf.<\/p>\n\n\n\n
UK month-ahead gas futures have risen by 150% since the conflict began, while the equivalent electricity contract<\/strong> has more than doubled. British gas prices have reached 203.28p per therm, their highest level since late 2022, according to reports cited by The Sun<\/a>.<\/p>\n\n\n\n Martin Lewis also warned that the outlook for domestic energy bills had deteriorated as gas costs increased. Writing on X, he said the situation for UK household bills \u201creally isn\u2019t looking good\u201d and noted that higher wholesale prices would feed into the January price cap.<\/p>\n\n\n\n