Energy bills are set to rise again in January up to £1,736 (Image: Getty)
A £1,736 warning has been issued to customers of every energy firm including British Gas, EDF, Octopus, OVO and E.On.
The latest official expert predictions on the price cap from Ofgem suggests that hopes for a price cut have been misplaced and, in fact, gas and prices will rise by at least one percent in January, to add to the 10 percent rise we have already had in October.
Energy regulator Ofgem sets the prices every three months and anyone not on a fixed tariff will see their bills go up and down according to the cap Ofgem sets.
:
Energy firm Cornwall Insight, which is the one uses for his energy predictions advice, is now forecasting that a typical household energy bill will rise by £19 from £1,717 to £1,736.
Ofgem is due to announce the new price cap, effective from January 1, this Friday – November 22.
Cornwall Insight had previously predicted a 1% fall to £1,697, but said this was now no longer the case.
The rise means energy bills will have gone up by £168 for a ‘typical use household’ since October 1.
Millions of pensioners are this year missing out on a £200 to £300 after the universal benefit was scrapped in favour of being means tested to only those on Pension Credit.
On top of that, pensioners are also without a £300 payment paid out last year and the year before.
Cornwall Insight said: “Given the price cap rise in October, many will have been hoping to see a fall in the cap for January.
“Unfortunately, forecasts show that prices will be staying relatively high for the remainder of winter.”
But prices are still expected to fall slightly in both the second and fourth quarters of next year, according to Cornwall Insight.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets, with the regulator confirming the level for the first quarter of next year on November 22.
The energy price cap was introduced by the Government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills, because householders still pay for the amount of energy they consume.
Craig Lowrey, principal consultant at Cornwall Insight, said: “Supply concerns have kept the market as volatile as earlier in the year and additional charges have remained relatively stable, so prices have stayed flat.
“While we may have seen this coming, the news that prices will not drop from the rises in the autumn will still be disappointing to many as we move into the colder months.”
National Energy Action director of policy and advocacy Peter Smith said: “The current cold spell is already having a devastating impact on the most vulnerable people.
“With unaffordable energy bills and far less support available nationally this winter, millions of people are already rationing their energy use to dangerous levels or getting deeper into debt trying to keep warm.
“With increased wholesale prices in the last few months, it is no surprise that there will be no let-up in the unaffordable cost of energy. The most vulnerable people will sink into further difficulties and acute hardship.”
The final announcement on the Ofgem price cap will be made on Friday, November 22.