Millions of households across Britain are bracing for a harsh financial winter, with energy bills predicted to surge from October despite a recent fall in the government's price cap. The grim forecast suggests the respite offered by lower summer usage will be short-lived.
According to leading energy consultancy Cornwall Insight, the average annual bill for a typical dual-fuel household is set to jump to £1,762 from October. This represents a significant increase from the current £1,568 cap set by the energy regulator, Ofgem.
Why Bills Rise as the Price Cap Falls
This apparent contradiction—higher bills during a lower price cap—stems from a simple fact: we use far more energy in the winter. The price cap governs the rate you pay per unit of gas and electricity, not your total bill.
Dr. Craig Lowrey, Principal Consultant at Cornwall Insight, explains: "Our predictions for the price cap, while remaining well above pre-crisis levels, are now trending downwards. However, it is important to remember that bills are determined by how much energy you use... higher energy consumption during the colder months will lead to higher bills."
A Long Road to Affordability
The situation, while an improvement from the astronomical peaks of over £4,000 seen during the worst of the crisis, remains dire for many families. Prices are still substantially higher than pre-2021 levels, placing continued strain on household budgets.
Charities and consumer groups are sounding the alarm. Simon Francis, coordinator of the End Fuel Poverty Coalition, did not mince words: "The last few years have been absolutely disastrous for energy bills... We're still going to have a very, very difficult time this winter."
The forecast offers little hope for a rapid return to cheaper energy, with bills expected to remain around £1,700 into the spring of 2025.
