Household energy bills forecast to see biggest rise in four years
A typical household faces an annual gas and electricity bill of £1,999 from January, based on a key forecast.
Household energy bills are set to surge by £276 on average in January, according to a forecast from Cornwall Insight, a consultancy. This represents a 16% increase, the biggest rise in four years and a particularly harsh blow during the coldest month of the year. The forecast comes a day before the price cap set by regulator Ofgem goes into effect, putting additional pressure on the government to provide support for those struggling to pay.
EDF Energy CEO Simone Rossi warns the UK is walking into a second energy crisis, urging an extension to the VAT cut on electricity currently in place. About 20 million households in England, Scotland and Wales are affected by Ofgem's price cap, with prices expected to rise by 4% on Thursday, adding about £60 to the annual bill. Cornwall Insight predicts the typical annual bill could rise to £1,999 in January, a significant jump from the current level.
Craig Lowrey, principal consultant at Cornwall Insight, says these prices will hit households hard, especially during a difficult time of year already marked by cold weather and recovering post-Christmas finances.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
