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Cornwall Insight expects a typical annual energy bill to reach £1,999 in January, £276 above October’s level, as higher costs threaten households over winter.
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Household energy bills in Great Britain could rise sharply in January 2027. Cornwall Insight forecasts that the typical annual bill under Ofgem’s price cap will reach £1,999, up £276, or 16%, from October’s level of £1,723. That would be the biggest increase in four years. Ofgem is due to announce the January cap in late November. [1]
About 20 million households in England, Scotland and Wales are on variable tariffs covered by the cap. It limits the price per unit of gas and electricity, rather than fixing what each household pays. October’s cap is rising by 4%, equivalent to about £60 a year for a typical household using both fuels and paying by direct debit. [1]
Cornwall Insight links its forecast to gas-supply disruption amid the conflict in the Middle East and low gas storage in Europe. Its consultant Craig Lowrey said a January rise was “all but certain”. In an interview for the BBC’s *Big Boss Interview* podcast, reported on 29 September, EDF Energy chief executive Simone Rossi said the UK was “walking into a second significant energy crisis”. He called for the cut in electricity VAT to continue beyond April. [1]
The prospect of higher winter bills comes as customers owe suppliers more than £5bn in unpaid bills and charges, according to Ofgem figures reported by the BBC. National Energy Action chief executive Adam Scorer has called for targeted support, action on energy debt and improvements to inefficient homes. [1]
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