{"id":126270,"date":"2026-10-01T11:15:00","date_gmt":"2026-10-01T10:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=126270"},"modified":"2026-10-01T11:13:14","modified_gmt":"2026-10-01T10:13:14","slug":"uk-energy-shock-bills-could-soar","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/uk-energy-shock-bills-could-soar\/","title":{"rendered":"UK Energy Shock: Bills Could Soar to Nearly \u00a32,000 in January"},"content":{"rendered":"\n

Household energy bills could rise sharply again in January<\/strong> as wholesale gas prices remain under pressure, with a typical dual-fuel bill forecast to reach almost \u00a32,000 a year.<\/strong><\/p>\n\n\n\n

January Could Bring The Biggest Rise In Four Years<\/h2>\n\n\n\n

Cornwall Insight<\/strong> expects the average bill to rise by 16% to \u00a31,999<\/strong> from January 1<\/strong>, which would represent an increase of \u00a3276<\/strong> compared with the October price cap<\/strong>. Cornwall Insight said the predicted increase would be the largest rise in the energy price cap since January 2023.<\/p>\n\n\n\n

The forecast comes as energy markets continue to react to disruption linked to the conflict involving Iran and the effect on supplies through the Strait of Hormuz, a major route for global energy shipments.<\/p>\n\n\n\n

Cornwall Insight also said European gas storage levels were at their lowest September level for 15 years, adding to uncertainty around prices during the colder months. Dr Craig Lowrey<\/strong>, principal consultant at Cornwall Insight<\/strong>, warned to The Sun<\/a> that households could face further pressure during a period when heating demand is typically higher.<\/p>\n\n\n\n

October Bills Are Already Rising<\/h2>\n\n\n\n

The January forecast comes as a new Ofgem energy price cap takes effect on October<\/strong>. The cap will rise by 4%,<\/strong> bringing the annual figure for a typical household in England, Scotland and Wales paying by direct debit to \u00a31,723.<\/strong><\/p>\n\n\n\n

That represents an increase of around \u00a360 a year, or \u00a35 a month<\/strong>, compared with the previous level. More than four million households on standard energy tariffs are affected by the latest change.<\/p>\n\n\n\n

At the same time, cooler temperatures are expected to increase energy consumption as households begin using central heating more frequently.<\/p>\n\n\n\n

Electricity VAT Cut Provides Some Relief<\/h2>\n\n\n\n

Households will also benefit from the removal of 5% VAT on domestic electricity bills<\/a><\/strong> from October 1 until March 31 next year. <\/strong>Government estimates suggest the change will save an average bill payer around \u00a345 a year.<\/p>\n\n\n\n

VAT on domestic gas remains at 5%. The effect of the electricity VAT change could be partly offset by higher wholesale energy costs if January prices rise as forecast.<\/p>\n\n\n\n

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Andy Burnham confirms that VAT will be removed from electricity bills starting this Thursday.https:\/\/t.co\/PAiZ4D1jU3<\/a>

\ud83d\udcfa Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com\/GfCXmNTOVB<\/a><\/p>— Sky News (@SkyNews) September 29, 2026<\/a><\/blockquote>