Great Britain Faces 5% Energy Bill Hike in January with Cap Reaching £1,930

Get ready for a hard winter, as gas prices are going up in great britain. Martin Young, an analyst at Investec, says the cap on what energy suppliers can charge may increase by around £100 per year for households.

The predicted energy price cap for most households between January and March is expected to increase to an average of £1,928 from the current £1,834, according to Martin Young.

Cornwall Insight estimates a slightly higher cap of around £1,931 for the first quarter of next year. These forecasts are based on the recent rise in wholesale market prices for gas and electricity, influenced by events such as the Israel-Hamas conflict.

Craig Lowrey of Cornwall Insight emphasized the instability of the wholesale energy market and the UK’s reliance on energy imports, leading to inevitable increases in energy bills.

The rise in standing charges, which suppliers add as a daily fee to cover the cost of connecting households to their energy supplier, has added to concerns. Ofgem has initiated a review of standing charges amid doubling costs for some households over the past two years.

Starting October 1, these charges will contribute over £300 a year to a typical dual fuel bill, raising concerns about potential impacts on low-income households.

Tim Jarvis, the director for markets at Ofgem, acknowledged the debate over standing charges and emphasised the need to reevaluate the issue considering the current cost of living pressures.