As energy prices are forecast to rise, UK households brace for higher bills this winter with Cornwall Insight predicting a £146 annual increase.
Brace yourselves—energy bills in the UK are on the rise again. According to recent forecasts by Cornwall Insight, a well-respected consultancy, domestic energy prices are expected to climb by 9% starting this October. This could see the average household paying around £1,714 annually for gas and electricity, up from the current typical bill of £1,568
Now, I know what you’re thinking—just when we thought we were catching a break, right? But this increase, although steep, isn’t entirely unexpected. With global energy markets still in turmoil, driven by ongoing geopolitical tensions and fluctuating wholesale costs, it seems this is the new normal for the foreseeable future.
Let’s break it down a bit. Ofgem, the UK’s energy regulator, will officially announce the next quarterly price cap this Friday. But Cornwall Insight’s predictions have already set the stage for what we can expect—a noticeable bump in what we’re all going to pay. To put it in perspective, wholesale energy costs (what suppliers pay) have shot up by about 20% recently, and those hikes are inevitably passed on to us, the consumers.
What’s really concerning here is that while this new price cap still provides some level of protection, it’s not a silver bullet. The cap controls the maximum amount we can be charged per unit of energy, but it doesn’t stop the overall bill from creeping up, especially if you’re in a larger home that naturally uses more energy.
You might be wondering if locking in a fixed-rate energy tariff could shield you from these rising costs. However, Cornwall Insight points out that the savings from these tariffs are minimal right now—only about £5 a year compared to the default tariff under the price cap. So, it’s a tough call: Do you go for the certainty of a fixed rate, or ride out the fluctuations in hopes that prices stabilize?
The crystal ball isn’t giving us much reassurance either. Cornwall Insight predicts that we could see another hike in energy costs when the January price cap is announced. And while they expect it to be a “modest” increase, any bump in costs is going to sting, especially with the added pressure of winter heating bills.
And let’s not forget, we’re not just dealing with rising energy costs. The standing charges—those pesky fixed daily fees just for being connected to the grid—are still a burden, with electricity standing charges at 60p a day and gas at 31p. Ofgem is considering changes to this system, but for now, those charges aren’t going anywhere.
It’s a tough situation, no doubt about it. And with government support tapering off compared to last winter, charities like National Energy Action are sounding the alarm. They’re warning that these rising costs could push some households to the brink, financially speaking.
So, what can we do? Every little bit helps, and experts have some handy tips for keeping energy use—and your bills—in check. For example, if your hot water is scalding hot, you might want to dial down the boiler. Managing draughts around the house is another easy win—simple tricks like stuffing a black bag with paper and sticking it up an unused chimney can make a difference. And if you’re up for a challenge, try limiting your shower time to four minutes—WaterAid has even made a playlist of four-minute songs to help you stay on track!
As we head into winter, the best thing we can do is stay informed and make those small adjustments that could save us a few quid here and there. Keep an eye on the news for the official Ofgem announcement and start thinking about how you can prepare for the months ahead.
