£1,736 warning issued to British Gas, OVO, EDF, EON, Octopus customers

A £1736 warning has been issued to anyone who's a British Gas, OVO, EDF, Eon Next or Octopus customer. Energy firm Cornwall Insight is now forecasting that a typical household energy bill will rise by £19 from £1,717 to £1,736. This is a rise of 1% from the current price cap, which increased last month to £1,717 a year for a typical consumer.

The energy regulator, Ofgem, which covers Great Britain, will announce the latest quarterly cap for January on Friday, as the UK enters the heating season. Craig Lowrey, a principal consultant at Cornwall Insight, said: “Our final price cap forecast for January indicates, as expected, bills will remain largely unchanged from October. 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.” The consultancy, which uses a similar calculation method to Ofgem to pre-empt the official announcement, said several factors in a “relatively volatile wholesale market” had sustained prices.

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These included “supply concerns tied to geopolitical tensions, maintenance on Norwegian gas infrastructure, weather disruptions” and others, it said. “Although the transition does require upfront investment, it promises lower bills down the line,” Lowrey said. “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.”

Richard Neudegg, the director of regulation at Uswitch, said: “Predictions that energy prices for those still on default tariffs will rise again in January are another kick in the teeth for households. The price cap is supposed to protect consumers, but millions face paying more during the coldest months of the year.”

Peter Smith, the director of policy and advocacy at National Energy Action, said: “The current cold spell is already having a devastating impact on the most vulnerable people. With unaffordable energy bills and far less support available nationally this winter, millions of people are already rationing their energy use to dangerous levels or getting deeper into debt trying to keep warm.”