British Gas, Octopus, Eon, EDF and OVO customers to have £19 wiped from bank accounts

UK households have been told to brace themselves for yet another increase to energy bills from the new year. More pain is on the way from January when the Energy Price Cap is adjusted once again.

But the increase is not expected to be anywhere near as high as the last one in October as charges remain fairly stable. It does still mean the typical household having to pay more.

The average annual bill is expected to increase by £19, from £1,717 to £1,736, according to latest estimates. There may be some relief from households the figure is not predicted to rise any further but bills are not expected to start coming down again until next summer.

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Around 80% of homes are on variable tariffs, meaning what they pay is influenced by the price cap. Martin Lewis' Money Saving Expert said: "After the latest 10% increase in the Energy Price Cap on October 1, all analysts are predicting a slight rise in the price cap from January 2025, and a further rise in April. The price cap is then expected to fall in July next year."

They added: "Bear in mind, the further out you go, the more crystal-ball gazing (and subject to change) the predictions are. Each price cap is based on a three-month assessment period, which ends roughly six weeks before each new cap takes effect.

"During this period, Ofgem will look at wholesale prices (and other costs included in the cap) to decide what the rates and standing charges should be for the next price cap period."