Energy bills rise: Households warned energy bills could hit £1,762 in April

In January, the price cap increased to £1,738 for typical dual fuel consumers. Market turbulence and upcoming price cap reforms could push bills even higher, with analysts warning of additional costs that might drive the cap up to £1,782.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight said: “Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new Government.

“While the wholesale market will remain a key driver of prices, Ofgem’s reforms and the introduction of new charges could raise costs further for households.

“There are a lot of unknowns, and while significant rises in price are currently unlikely, the scale of any increases will depend on how the market and the reforms unfold.

While prices are expected to fall in July next year, the immediate outlook points to a third consecutive rise in energy costs for British households.

Cornwall Insight warned that these concerns are now compounded by questions over a potential second Donald Trump presidency and its effects on American gas exports.

New energy network charges are adding further pressure to the underlying costs of electricity and gas.

Proposed reforms could add at least another £20 to annual bills, potentially pushing the price cap to £1,782 – a 2.5 per cent increase from January levels.

These reforms include new allowances to fund the Energy-Intensive Industry network charge exemption scheme, which compensates certain industries for network charging costs.

Ofgem is also considering extending the existing Supplier Bad Debt Allowance, introduced to support some prepayment meter customers. The scale of increases will largely depend on how these market reforms unfold.

Lowrey emphasised that while significant price rises are currently unlikely, market conditions remain unpredictable.

He said: “What we do know is that the market is unlikely to lower bills, and affordability and fuel poverty will continue to be a pressing issue.

“This underscores the need for policymakers and suppliers to prioritise supporting vulnerable consumers.

“This could involve looking at short-term financial assistance, while simultaneously, focusing on longer-term solutions, such as reforming energy tariffs, accelerating energy efficiency programs, and investing in sustainable energy.

The Cornwall Insight expert stressed the need for policymakers and suppliers to prioritise supporting vulnerable consumers.

This could involve implementing short-term financial assistance while developing longer-term solutions. These solutions include reforming energy tariffs, accelerating energy efficiency programmes, and investing in sustainable energy sources.

Ben Gallizzi, energy spokesman at Uswitch.com, offered practical advice for concerned households.

He said: “This predicted rise in April’s price cap would mark a third consecutive hike for energy prices, adding to the current pain for households.”

Households could save up to £112 per year by switching to a 12-month fixed deal.

“There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January,” he explained.

Consumers worried about bills should check their eligibility for energy support and contact their suppliers for potential assistance