Households across the UK are bracing for another blow to their finances as energy bills are expected to rise again from January. The anticipated increase comes despite hopes for relief from the escalating cost-of-living crisis.

Energy regulator Ofgem is set to announce its latest price cap on Thursday, with experts predicting a 5% increase from the current £1,834 for a typical dual fuel household. This would push the average annual bill to £1,931, effective from January to March.

While there is a glimmer of hope with a projected drop in the typical bill to £1,853 from April, it is not expected to fall below today’s level until July next year. The persistent upward trend in energy costs is attributed to an unstable wholesale energy market and the UK’s reliance on energy imports.

This latest development casts a shadow over the already strained finances of many households, adding to the burden of rising living costs. With energy bills expected to remain high for the foreseeable future, the prospect of respite from the cost-of-living crisis seems to be fading away.

Source – The Independent – Monday 20th November 2023