Annual energy bills predicted to fall by £22 in January


The energy price cap covers around 22 million households in England, Wales and Scotland and is set every three months by energy regulator Ofgem.

It sets the maximum amount suppliers can charge customers for average energy usage.

It is based on the cost of each unit of energy, not the total bill – so those who use more energy, pay more.

Cornwall Insight is widely respected for the accuracy of its predictions. It said it expected typical annual bills to rise by £75 from April when the next price cap is set, citing rising charges associated with Britain’s transition to net zero.

It marks a shift in the main driver of energy bills from sky-high wholesale prices to the cost of overhauling and maintaining the country’s energy networks, the forecaster added.

Dr Lowrey said: “The shift to renewables will bring long-term stability and energy independence, but it’s not free.

“The upfront costs are real, and they’re landing on bills now. The challenge will be balancing short-term affordability with long-term resilience, and crucially making sure people understand why that trade-off matters.”


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