Household energy bills are predicted to rise at the start of next year as higher gas and electricity prices push up the regulator’s price cap
The latest forecast from Cornwall Insight ahead of Friday’s OFGEM announcement sees them predict the January price cap to be £1,736 per annum.
This is a rise of 1% from the current price cap which was set at £1,717 per year for a typical consumer. Ofgem will announce the January cap on Friday 22 November.
Previously they had predicted a fall in the cap but unfortunately, forecasts show that prices will be staying relatively high for the remainder of winter.
The cap level is a reflection of a relatively volatile wholesale market, influenced by supply concerns tied to geopolitical tensions, maintenance on Norwegian gas infrastructure, weather disruptions, amongst other smaller factors.
Despite prices stabilising in comparison to the past two years, the market remains very sensitive to global events. This is leaving prices substantially above historic averages.
Looking further ahead, they currently forecast the cap will drop slightly in April 2025 and again in October 2025.
