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Winter energy bills to rise by more than expected

Updated: Apr 10

Typical domestic energy bills could hit more than £3,600 a year this winter. According to Consultancy Cornwall Insight, the typical gas and electricity bill in England, Wales and Scotland could reach £3,615 by January 2023, hundreds more than previous predictions.

For comparison, the average bill was £1,400 a year in October 2021. The last energy price cap, the maximum amount suppliers can charge customers for average energy use, saw this rise to £2,000 in April 2022 and is expected to go up again in October.

Rising gas prices and concerns over Russian supply were behind the price rise. More concerningly, is the duration that these price rises will last, with household energy bills expecting to show little sign of abating well into 2024. This is alongside soaring UK inflation, the highest in 40 years.

In May, energy regulator Ofgem said the typical household should expect an £800 increase in October, although they would later admit that "prices are looking higher than they did when we made that estimate."

A spokesperson from the Department for Business, Energy and Industrial Strategy said:

"While no government can control global gas prices, we are providing £37bn of help for households including the £400 discount on energy bills, and £1,200 of direct support for the most vulnerable households to help with the cost of living"

This is after the government announced how households in England, Scotland and Wales will receive £400 to help with rising fuel bills.

However, housing charity shelter warn that tenants whose bills are included in their rent might miss out on the £400 energy rebate. The government has said it expected landlords to pass on the discount, but almost 13% of private renters who have energy bills included in their rent are "at the mercy of their landlord" to pass on the support.


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