Energy bills are set to increase by £73 per year in January, according to recent forecasts. From October, the average household is expected to pay around £1,923 annually until December,

reflecting a decrease compared to the current typical rate of £2,074 due to a downward trend in the price cap this year. However, analysts from Cornwall Insight predict that energy bills will rise to £1,996 at the beginning of 2024, driven by an anticipated 3.5% increase in the energy price cap due to rising wholesale energy prices.

The price cap, which limits the amount suppliers can charge for each unit of energy consumed, is subject to change based on various factors such as energy usage and supplier costs. Despite the expected increase in January, energy bills remain significantly higher than they were in 2021, and some government support provided last winter has been discontinued. Bills are projected to decrease gradually throughout the next year, reaching approximately £1,922 by the following winter.

It's worth noting that these figures are based on an older definition of average energy use that is being phased out. Under the new definition, the forecasted average yearly bill will be approximately £1,898 in January. Dr. Craig Lowrey, Principal Consultant at Cornwall Insight, emphasized the need for policies to address the possibility that high energy prices have become the new normal, as government support alone may not be sufficient to mitigate the impact of a volatile international energy market on bills.