Annual energy bills for UK households are set to take a sharp upward turn in January, according to a forecast by consultancy firm Cornwall Insight.

The prediction suggests that the typical household’s annual energy costs could soar by £73, reaching a potential total of £1,996 under the official price cap established by the UK’s energy regulator Ofgem.

The energy price cap serves as a safeguard, dictating the maximum amount suppliers can charge households for each unit of energy consumed.

Cornwall Insight analysts attribute this looming rise primarily to increases in wholesale energy prices.

Starting in October, a typical dual-fuel household is expected to pay an annual sum of £1,923 until December.

Richard Neudegg, Director of Regulation at Uswitch said: “This yo-yoing of energy bills is down to the Ofgem price cap, which now changes every three months.

“Only those on fixed tariffs have the certainty of knowing what they will pay for the full term of their deal. But more could be done by the regulator to encourage suppliers to offer these more widely and at more competitive prices.”

Article source: https://www.energylivenews.com/2023/09/29/brits-brace-for-73-spike-in-energy-bills/