Energy Price Cap could rise 9% in October

Annual bills look set to rise £146 per household, with one analyst warning that prices will likely never return to the 'normal' levels seen before the energy crisis struck.

Energy bills looks set to rise sharply as we head into the high-usage winter months, new data suggests.

Analysts at Cornwall Insights have predicted that the Energy Price Cap will rise 9% from October. 

That would see the typical household energy bill rise from £1,568 at current levels to £1,714, although the actual change will depend on how much energy you use.

The firm also predicted a further 'modest' increase at the start of 2025.

Ofgem is set to announce the official October Energy Price Cap on 23 August.

High bills to become 'the new normal'?

Alarmingly, the principal consultant at Cornwall warned that bills might never return to the levels seen before the energy crisis struck in 2021.

Back then, households typically paid around £1,200 a year for their energy usage.

But Craig Lowrey at Cownall said it would take "significant intervention" to get anywhere near those levels once more.

"Following two consecutive falls in the cap, I’m sure many hoped we were on a steady path back to pre-crisis prices," he said. 

"However, the lingering impact of the energy crisis has left us with a market that's still highly volatile and quick to react to any bad news on the supply front.

“Despite this, while we don't expect a return to the extreme prices of recent years, it's unlikely that bills will return to what was once considered normal.

"Without significant intervention, this may well be the new normal."

Double blow for many pensioners

The prospect of having to find an extra £12 a month to cover their energy usage will add further pressure to millions of household budgets, but the change will be more keenly felt by many retired households.

That's because the Government recently announced that some 10 million pensioners in England and Wales will no longer receive their winter fuel payments, which are worth between £100 and £300.

Only those in receipt of Pension Credit will still receive the payments from now on. 

Worryingly, an estimated 800,000 eligible Brits aren't claiming the credit. If you don't currently get it, take the time to check if you're eligible for Pension Credit. 

Take matters into your own hands

There's no question that more households will face a squeeze on their income this winter.

While the benefit of switching energy deals is still limited given the current state of the market, there are thankfully many more steps you can take to cut your energy costs. 

From getting free insulation to simple steps to reduce your usage, have a read of our comprehensive guide to cutting your energy bills.