{"id":126195,"date":"2026-10-01T07:00:00","date_gmt":"2026-10-01T06:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=126195"},"modified":"2026-10-01T00:11:25","modified_gmt":"2026-09-30T23:11:25","slug":"energy-prices-face-biggest-rise-in-years","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/energy-prices-face-biggest-rise-in-years\/","title":{"rendered":"Energy Prices Face Biggest Rise in Years as Households Prepare for Higher Winter Bills"},"content":{"rendered":"\n

Household energy bills in Great Britain are forecast to increase sharply in January, with the typical dual-fuel bill expected to rise by \u00a3276 to \u00a31,999 a year. The prediction from energy consultancy Cornwall Insight<\/strong> comes as gas prices increase and European storage levels remain low.<\/p>\n\n\n\n

The forecast follows a 4% rise in the energy price cap from October, which will take the typical annual bill for households using both gas and electricity to \u00a31,723<\/strong> if maintained over a full year. The January increase would represent the largest quarterly rise since January 2023, according to Cornwall Insight.<\/p>\n\n\n\n

Gas Market Disruption Drives Higher Energy Costs<\/strong><\/h2>\n\n\n\n

The expected rise is linked to disruption in global energy markets following the conflict in the Middle East. According to Cornwall Insight, gas prices in Europe have doubled in recent months as countries prepare for colder weather with gas storage levels at their lowest September level for 15 years.<\/p>\n\n\n\n

The consultancy said supplies had been affected by several factors, including reduced refilling of storage facilities after a cold end to the previous winter and increased demand for gas power generation during summer heatwaves. Disruptions affecting oil <\/a>and gas exports from the Gulf have also contributed to higher market prices.<\/p>\n\n\n\n

Craig Lowrey<\/strong>, principal consultant at Cornwall Insight, said households would face difficult conditions during January, a period when many people are already dealing with colder weather and higher spending after Christmas.<\/p>\n\n\n\n

\u201cThese prices are going to hit households hard<\/em>,\u201d Lowrey said, according to Cornwall Insight. He added that the forecast represented the biggest price cap<\/strong> rise seen in four years.<\/p>\n\n\n\n

The January figure remains a forecast rather than a confirmed price change. Ofgem, the energy regulator for Great Britain, will announce the official price cap covering January to March 2027 in November. The regulator calculates the cap using wholesale energy prices<\/strong> during a defined period, meaning the final level could change if market conditions shift.<\/p>\n\n\n\n

\"\"
Energy prices rise as Middle East disruption pushes UK bills higher \u00a9Canva<\/em><\/figcaption><\/figure>\n\n\n\n

Government Faces Pressure as Households Prepare for Higher Bills<\/strong><\/h2>\n\n\n\n

The predicted increase has increased calls for further support for households facing higher energy costs. According to the Energy Fuel Poverty Coalition and National Energy Action, vulnerable and low-income households may face additional pressure during winter as bills <\/a>rise.<\/p>\n\n\n\n

National Energy Action chief executive Adam Scorer<\/strong> said the October price cap increase was already creating difficulties for households struggling with energy costs. He called for additional targeted support, action on energy debt and measures to improve the energy efficiency of homes.<\/p>\n\n\n\n

The government has introduced a temporary removal of VAT from household electricity bills from October, a measure expected to save the average bill payer around \u00a345 a year. Households will continue to pay VAT on gas, according to government estimates.<\/p>\n\n\n\n

Prime Minister Andy Burnham said the government was considering possible measures to reduce pressure on households. Speaking to BBC Radio<\/a> 4\u2019s Today programme, he said the cost of home energy and fuel prices was \u201cvery difficult indeed\u201d.<\/p>\n\n\n\n

Energy supplier EDF has also called for further action. According to the BBC, EDF chief executive Simone Rossi<\/strong> said the UK was \u201cwalking into a second energy crisis<\/em>\u201d and urged the government to extend the reduction in VAT on electricity bills.<\/p>\n\n\n\n

The rise in energy costs comes as households are already facing unpaid energy charges. Ofgem data cited by the BBC shows customers collectively owe more than \u00a35bn in unpaid bills and charges to suppliers. The final January price cap will be confirmed by Ofgem later in the year, but current forecasts indicate that households on variable tariffs may face higher costs during the winter months.<\/p>\n","protected":false},"excerpt":{"rendered":"

Energy bills across Great Britain are expected to rise sharply from January, adding further pressure on households. A new forecast points to a significant increase in typical annual costs as global gas markets remain unsettled. The rise comes after another adjustment to the energy price cap in October, with millions of households expected to feel the impact as colder months arrive.<\/p>\n","protected":false},"author":10,"featured_media":126199,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-126195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/126195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=126195"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/126195\/revisions"}],"predecessor-version":[{"id":126198,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/126195\/revisions\/126198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/126199"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=126195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=126195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=126195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}