Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

Killings of 2 Japanese men in Manila linked to hit order from overseas ‘boss’: police

August 21, 2025

Gold resumes losses before Jackson Hole

August 21, 2025

China and India’s ‘cold peace’; tree planting linked to droughts: SCMP daily highlights

August 21, 2025
Facebook X (Twitter) Instagram
Thursday, August 21
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » Energy bills forecast to rise by £85 a year
Highlights

Energy bills forecast to rise by £85 a year

adminBy adminFebruary 18, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 75


Domestic energy prices are forecast to rise by 5% from April, adding £85 a year to household bills, according to consultancy Cornwall Insight.

The forecaster, which is widely regarded for its accurate predictions, said a household using a typical amount of gas and electricity would pay £1,823 a year.

The figures emerged as Energy Secretary Ed Miliband wrote an urgent letter to Ofgem, the regulator which sets the price cap, asking it to move quickly to protect consumers.

The predicted higher prices will take effect at the same time as increases to water and council tax bills in April.

However, minimum wage levels will also go up while benefits and the state pension will increase.

Cornwall forecasts that the price cap will rise from its current level of £1,738 per year for a typical household.

Higher household bills are likely to add pressure to the government who are already facing criticism for removing the winter fuel allowance from elderly people not claiming the pension credit or other means-tested financial support.

Ofgem will announce the official new energy price cap level on 25 February, which will affect homes in England, Wales and Scotland.

The predicted rise will come as the days get lighter and warmer, when energy use tends to fall.

Cornwall say the hike is due to a combination of colder weather and a fall in gas storage levels across Europe, which has led to a sharp rise in wholesale prices.

Bills are about 50% higher than pre-Covid levels, but remain below the peak reached in 2022 when Russia’s full-scale invasion of Ukraine caused energy prices to spike.

The price cap affects 26 million households on default, variable tariffs and is set every three months by Ofgem.

While the cost of each unit of gas and electricity is capped, the total bill is not, so household bills will vary depending on how much energy is used.

The regulator illustrates the cap by showing the impact on the annual bill of a household with typical energy usage.

In January, there was a 1.2% rise – which worked out as £1.75 extra a month compared with the previous cap.

A period of high prices means households have collectively built up debt of £3.8bn to suppliers.

The average household in arrears owes more than £1,500 for electricity and £1,300 for gas.

A rise in the energy cap would mean a third successive increase in energy bills at a time of year when the weather starts to get warmer and households would usually hope to see a reprieve in costs.

National Energy Action (NEA), a charity aimed at helping people struggling with energy bills, said it will feel like an “interminable winter” for many.

“There is no getting used to this new normal for the people we try to help,” said NEA’s chief executive Adam Scorer.

“Millions of the most vulnerable households are struggling with debt and severely rationing their heating.”

The Energy Savings Trust said changes to how buildings are insulated helps to lower bills.

The trust’s head of policy, Stew Horne, said: “We’re urging policymakers to put in place clear, actionable steps to help people upgrade their homes to make them warmer and more affordable to heat.”

He suggested setting up a national retrofit advice service to “enable people to feel confident to install measures, such as insulation and draught proofing”.

In his letter to the regulator, Miliband asked the Ofgem chief executive to set out faster means it can pursue to ease the pressure of the “rollercoaster” of global gas markets.

“In recent months we have seen once again the dangers for our country of being exposed to fossil fuel markets controlled by petrostates and dictators,” he wrote.

“Once again, the British people and British businesses will face the consequences of fossil fuel markets we do not control,” he added.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

Highlights

Shanghai arts festival books world-class acts to foster cultural tourism

August 21, 2025
Highlights

Alibaba to spin off its Banma autonomous driving business via an IPO on Hong Kong exchange

August 21, 2025
Highlights

AIA profit rises 12% in first half on mainland visitors’ buying spree

August 21, 2025
Highlights

Hong Kong stocks fluctuate as investors await Fed’s Jackson Hole insights

August 21, 2025
Highlights

Bitcoin and ether ETFs debut in Hong Kong after unveiling of stablecoin rules

August 21, 2025
Highlights

Hong Kong’s stock rally still has room to run on ‘reasonable’ valuations, Templeton says

August 20, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Poland agrees to boost employment opportunities for Pakistani workers – Business & Finance

August 21, 2025

Pakistan tyre maker commissions 2.5MW solar power system at manufacturing facility – Markets

August 21, 2025

Chashma Sugar Mills approves amalgamation with wholly-owned subsidiary – Business & Finance

August 21, 2025

Pakistan commerce chief arrives in Dhaka to boost bilateral trade – Business & Finance

August 21, 2025
Latest Posts

PSX hits all-time high as proposed ‘neutral-to-positive’ budget well-received by investors – Business

June 11, 2025

Sindh govt to allocate funds for EV taxis, scooters in provincial budget: minister – Pakistan

June 11, 2025

US, China reach deal to ease export curbs, keep tariff truce alive – World

June 11, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • Killings of 2 Japanese men in Manila linked to hit order from overseas ‘boss’: police
  • Gold resumes losses before Jackson Hole
  • China and India’s ‘cold peace’; tree planting linked to droughts: SCMP daily highlights
  • China and India’s ‘cold peace’; tree planting linked to droughts: SCMP daily highlights
  • 10 things to watch in the stock market Thursday including Walmart earnings and rate cut hopes

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

Killings of 2 Japanese men in Manila linked to hit order from overseas ‘boss’: police

August 21, 2025

Gold resumes losses before Jackson Hole

August 21, 2025

China and India’s ‘cold peace’; tree planting linked to droughts: SCMP daily highlights

August 21, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.