Energy consultancy Cornwall Insight has warned they are expecting Ofgem to increase the price cap for the second winter in January.
The company said that on Friday Ofgem will reveal what the typical household energy bill will be and they are expecting bills will rise by 1% to £19 to £1,736 on 1 January 2025 from the current rate at £1,717.
Cornwall Insight said earlier this week, “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.”
The company said that in the second and fourth quarters of 2025 price could slightly fall as Ofgem changes the energy price cap every three months based on the cost of energy within wholesale markets.
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.”
Lowrey added, “With it being widely accepted that high prices are here to stay, we need to see action.
“Options like social tariffs, adjustments to price caps, benefit restructuring or other targeted support for vulnerable households must be seriously considered.
“The Government needs to keep momentum on the transition while acknowledging that immediate support is essential for those struggling now.
“Inaction is a choice to leave people in the cold.”
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