Energy bills expected to fall in January

Energy bills could fall in January after today’s 10% price hike.

Experts from Cornwall Insights, the consultancy that has correctly predicted energy price changes over the past few years, believe that household energy prices will fall by 1% in January.

The fall follows today’s 10% rise which takes the average annual dual fuel energy bill to £1,717.

It was previously forecast that energy bills would rise again in January. But it’s now believed households will pay £1,697 per annum from the start of the new year. And gas and electricity prices could continue to fall until at least September 2025.

Cornwall Insights has changed its forecast because the outlook for the energy sector has improved, with the EU meeting its gas storage targets, a strong global LNG supply and increased confidence in gas and electricity imports.

Craig Lowery, Cornwall Insight principal consultant, said: “While households will have to endure a rise in the cap from October, our current forecast suggests that this is a temporary blip.

“It is important the government and other stakeholders look at actions they can take to shield vulnerable consumers whether this be targeted direct support, or changes to the bill system through additions such as social tariffs. Not everybody can wait for renewables energy savings to kick in.”

Despite the forecasted drop, energy bills are still significantly higher than they were just over three years ago.

This has led to some experts calling for changes to the energy price cap and more targeted help for those who are struggling.

What help is available if you’re struggling with energy bills? 

50% of the people we help are in debt to their energy supplier. With temperatures starting to drop as we head into winter this figure will continue to rise. But there is help available if you are struggling.

Speak to your energy supplier

The first step in tackling energy debt is to contact your energy supplier. They have a duty of care to help you find a solution. Here are some ways they can support you by:

• Setting up an affordable repayment plan
• Providing energy efficiency advice to help reduce your bills
• Offering a prepayment meter to help you budget
• Checking if you're on the best tariff for your needs
• Writing off some of your debt
• Providing support from their hardship fund

If you don’t contact your supplier, they might threaten to disconnect you.

Government schemes to help with energy debt

There are also several government initiatives designed to support those struggling with energy bills, such as:

Warm Home Discount Scheme

This scheme provides a one-off £140 discount on your electricity bill during the winter months. If you're on a low income or receive certain benefits, you may be eligible.

Winter Fuel Payment

If you were born on or before 5 October 1954 and receive pension credit, you could be eligible to get between £100 and £300 to help with your heating bills.

Cold Weather Payment

If you're on certain benefits and the temperature in your area drops below freezing for seven consecutive days, you may be entitled to a £25 payment.

Household support fund

The Labour government recently extended the household support fund until March 2025. You might be able to get money or vouchers from your local council to help you with energy bills.

Free debt help

Energy arrears are a priority debt. This means the consequences of not paying your energy bills can be serious. If you are struggling with debt, we can help. We can also make sure you’re claiming all the financial support you’re entitled to.