British Gas, EON, EDF and Octopus customers face £1,782 warning from January | Personal Finance | Finance
British Gas, E.ON, EDF, Octopus and OVO Energy customers face a £1,782 energy bill warning from January.
Experts have warned that UK households are in for another hike in energy costs as market “turbulence” and Ofgem’s price cap reforms feed through to bills.
The latest forecast from analysts Cornwall Insight suggests that the energy price cap could go up to £1,762 per year for a typical dual fuel household, marking a 1% increase from the cap of £1,738 that comes into effect on January 1.
The increase in costs has been attributed to economic and geopolitical factors influencing wholesale prices, including the Russia-Ukraine conflict and the second Donald Trump presidency, while new energy network charges and other costs have been contributing to higher gas and electricity prices.
Cornwall Insight adds that there is also the prospect of adding extra costs to the price cap, at around another £20 per year. Factoring this in, forecasts suggest the cap could be as high as £1,782 – or a 2.5% increase – from January.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new Government.
“While the wholesale market will remain a key driver of prices, Ofgem’s reforms and the introduction of new charges could raise costs further for households.
“There are a lot of unknowns, and while significant rises in price are currently unlikely, the scale of any increases will depend on how the market and the reforms unfold.”
Mr Lowrey added that the market is “unlikely” to lower bills which means affordability and fuel poverty continue to be a “pressing issue” for households across the UK, heightening the need for support for the most vulnerable.
The increase to the energy price cap from January 1 will affect customers of all energy suppliers, including British Gas, E.On, EDF, Octopus and OVO.
Households are advised to look at fixed deals on the market to help cut their energy bill costs next year as there are currently some available that are lower than the January’s predicted price cap, offering potential savings of over £100.
Ben Gallizzi, energy spokesman at Uswitch.com, said: ““There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save.
“Right now, the average household could save up to £112 per year against the current price cap by switching to a twelve month fixed deal. Consumers who are worried about paying their energy bill should check what energy help they are eligible for, and contact their supplier who may be able to offer support.”
