Households are set to learn that their energy bills will rise again from January as hopes for relief from the cost-of-living crisis are put on hold.
Ofgem will announce its latest price cap on Thursday, with energy consultancy Cornwall Insight predicting it will increase from the current 拢1,834 for a typical dual fuel household to 拢1,931 鈥 a 5% jump to take effect from January to March.
The forecasts suggest that the typical bill will then fall to 拢1,853 from the start of April, but will not drop below today鈥檚 level until July next year.
But 鈥渟harp price falls are not expected鈥, it said.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: 鈥淎n unstable wholesale energy market, coupled with the UK鈥檚 reliance on energy imports, makes it inevitable that energy bills will rise from current levels.
He added: 鈥淭he King鈥檚 Speech acknowledged that it is our exposure to volatile international energy markets that has led to higher and less predictable bills.
鈥淲hile we continue to advocate for immediate targeted support for vulnerable consumers, it is evident that the only enduring solution lies in transitioning the UK away from the influence of global energy prices towards sustainable, domestically sourced energy.鈥
鈥淲e鈥檇 recommend that everyone without a smart meter takes a meter reading on or close to December 31 to make sure they don鈥檛 overpay for any energy used before the new price cap takes effect. Submitting meter readings on a regular basis is a good idea, and makes sure you are billed correctly.鈥
Richard Neudegg, director of regulation at Uswitch.com, said: 鈥淭his price rise will come at the worst time of year for households, who will be using more energy at home during one of the coldest points of the winter.
鈥淭he price cap is no longer fit for purpose, and the system needs reforming to create a more competitive market, which also protects households.鈥