Key facts
- Household energy bills in Great Britain are predicted to rise by £276 a year from January.
Household energy bills in Great Britain are forecast to increase by £276 annually from January, reaching £1,999 for the average dual-fuel bill. This 16% rise, higher than previously predicted, is attributed to soaring gas prices driven by Middle East conflict and depleted storage levels.
The projected increase in energy bills will place further financial strain on households in Great Britain, particularly during the winter months. Soaring gas prices, influenced by geopolitical events and supply disruptions, are directly impacting consumer costs and contributing to broader inflation concerns.
Household energy bills in Great Britain are set to increase by £276 annually from January, according to forecasts from Cornwall Insight. The typical dual-fuel bill is predicted to rise by 16% to £1,999 for the average household during the January to March quarter. This prediction is higher than previous estimates, with analysts citing a recent surge in gas market prices to three-year highs as the primary driver.
European gas prices have doubled in recent months as the continent faces winter with its lowest gas storage levels in 13 years. This situation is exacerbated by the ongoing conflict in the Middle East, which has triggered an increase in global market prices and disrupted oil and gas exports from the Gulf. Buyers have delayed refilling storage facilities due to a cold end to last winter and increased gas power generation during summer heatwaves, further depleting stocks.
The gloomier outlook comes as millions of households are already preparing for a 4% rise in energy charges starting Thursday, as Ofgem adjusts the quarterly energy bill cap. The unit cost of electricity will increase to 26.32p per kilowatt hour from 26.11p, and gas charges will rise to 7.97p from 7.33p. These unit cost increases would equate to approximately £1,723 annually for a typical home's gas and electricity consumption, though actual bills will vary based on individual usage.
Pick the topics you care about. Get only what matters, on your cadence.