In the wake of Christmas, customers at British Gas, EDF, EON, Ovo and Octopus could be £22 richer.
Energy bills are set to dip by £22 in January, UK households have been told. Experts at Cornwall Insight have said energy regulator Ofgem’s price cap is expected to dip by 1%, taking the average bill for a typical household down to £1,733.
In the wake of Christmas, customers at British Gas, EDF, EON, Ovo and Octopus could be £22 richer.
Craig Lowrey, principal consultant at Cornwall Insight, said: “January’s price cap dip might look like good news but it’s only part of the picture. Bills are still well above pre-crisis levels and are set to climb again in April, and this time it’s not higher wholesale prices driving the rise.”
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Richard Neudegg, director of regulation at Uswitch.com commented today: “Energy prices look set to remain high into the new year, with little respite for households struggling as the winter cold sets in.
“Ofgem is expected to confirm the January price cap later this week, but April is when we could expect a significant increase. Forecasts suggest we could be looking at a hike of £75 in spring to pay for energy network maintenance and upgrades.”
Ofgem will release the new price cap this coming Friday, UK households have been warned.
Richard went on, adding: “There have been rumours the government may cut the 5% VAT on our energy bills — not factored into this forecast — but households will have to wait and see what’s announced in the Budget next week.
“Far too many are paying more than they need to for their energy by sticking with the default option.
“The majority of homes are still on a standard variable tariff and can save on their energy bills by switching to a well-priced fixed deal now.
“There are currently 26 fixed deals that undercut the current October price cap, which offer savings of around £185 for the average household.”
