Energy price cap expected to rise by 9% in October

Domestic energy prices are expected to rise over the winter, according to advice from Cornwall Insight.

The forecaster, widely regarded for its accurate predictions, said a household using a typical amount of gas and electricity would pay £1,714 a year from October.

This compares with the current annual bill of £1,568, the lowest in two years.

Energy regulator Ofgem will announce its next official quarterly price range on Friday, with charities worried about the prospect of another price rise.

Although the price range is changed every three months, it is explained by Ofgem based on the annual bill for a household using a typical amount of gas and electricity.

People in larger properties tend to pay more overall due to higher energy use, and people in smaller properties tend to pay less.

This is because the cap controls the maximum price charged for each unit of gas and electricity, rather than the total tariff.

It affects 28 million households in England, Wales and Scotland. The sector is regulated separately in Northern Ireland.

With prices rising, some bill payers may be looking at options to adjust their energy bills.

Cornwall Insight found that the top 10 cheapest rates on the market in August saved an average of just £5 a year, compared to the default rate set by the price cap.

That could change in the coming weeks, and Richard Newtek, of price comparison website Usswitch, said those who want certainty have options.

“Just because it's a solution doesn't mean it's a good price point,” he said.

“The question for consumers is, if they want that level of certainty, how cheaply can they get it.”

Cornwall Insight said costs are expected to rise again in winter when the January price cap is announced.

It said a “modest” rise is expected. However, it added that recent tensions over the Russia-Ukraine war could push prices higher.

“While we do not expect a return to the extreme prices of recent years, it is unlikely that bills will return to what was once considered normal. Without significant intervention, this could be the new normal,” said Craig Lowrey, the firm's principal adviser. Predictor.

Trust National Energy Action said any rise in prices, with less government support, could stretch some households' finances “beyond the breaking point”.

Fixed charges, a fixed daily charge that includes the costs of connecting to a supply, currently stand at 60p a day for electricity and 31p for gas, although they vary by region.

Ofgem is currently considering whether to change the standing charge billing system.

Energy bills are significantly lower than peaks since Russia's invasion of Ukraine, and much higher than before the pandemic, when the government moved to rein in bill hikes.

Experts share three tips to keep energy usage in check during the warmer months:

• If your hot water is too hot to wash your hands, your system is too high, so turn the boiler down
• Manage your drafts, such as placing a black bag with scrunched paper over an unused chimney or other draft controls around the house.
• Limit shower time to four minutes. Organized by WaterAid Charity A playlist of four minute songs To keep you on time

If you are struggling to pay your energy bills read more here