Proactive Investors - Cornwall Insight has forecasted an increase in energy bills for January to March 2025, estimating an annual cost of £1,736 for a typical dual-fuel consumer.
This marks a 1% rise compared to Ofgem’s October price cap, which sets a maximum limit on the rates energy suppliers can charge for each unit of gas and electricity, and their standing charges.
Cornwall’s prediction “reflects the volatility of the wholesale market, driven by factors such as geopolitical and supply concerns, maintenance on Norwegian gas infrastructure, weather-related disruptions, and other smaller influences”, the research firm stated.
Craig Lowry, principal consultant at Cornwall, said the lack of a fall in energy prices will be "disappointing" for households. There “doesn't seem to be any sign of a return to pre-energy crisis levels”, he told the BBC.
Cornwall Insight’s Default Tariff Cap Predictor, which forecasts Ofgem's quarterly price cap, examines the factors influencing household energy bills.
The upcoming price cap for January includes a standing charge of £0.61 per day for electricity and £0.32 per day for gas. Unit rates are set at 24.83p per kWh for electricity and 6.33p per kWh for gas.