Customers of every energy firm from British Gas to EDF, EON, OVO and Octopus as well as Utilita will face yet another energy bills increase this winter – just after Christmas.
The latest predictions on the energy bills price cap suggests that hopes for a price cut were in vain and in fact, gas and electricity prices will rise by at least one percent in January.
The rise follows a 10 percent increase which took effect from October.
Energy firm Cornwall Insight, which is the one Martin Lewis uses for his energy predictions advice, is now forecasting that a typical household energy bill will rise by £19 from £1,717 to £1,736.
Ofgem is due to announce the new price cap, effective from January 1, this Friday, November 22.
Cornwall Insight had previously predicted a 1% fall to £1,697, but said this was now no longer the case.
Millions of pensioners are also facing a winter with less support, after Labour axed the £200 to £300 Winter Fuel Payments for those who do not receive Pension Credit and an estimated 10 million pensioners will miss out on the payments of up to £300 this year who had received it last year.
On top of that, pensioners are also without a £300 Cost of Living payment paid out last year and the year before.
Cornwall Insight said: “Given the price cap rise in October, many will have been hoping to see a fall in the cap for January.
“Unfortunately, forecasts show that prices will be staying relatively high for the remainder of winter.”
But prices are still expected to fall slightly in both the second and fourth quarters of next year, according to Cornwall Insight.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets, with the regulator confirming the level for the first quarter of next year on November 22.
The energy price cap was introduced by the Government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills, because householders still pay for the amount of energy they consume.
Craig Lowrey, principal consultant at Cornwall Insight, said: “Supply concerns have kept the market as volatile as earlier in the year and additional charges have remained relatively stable, so prices have stayed flat.
“While we may have seen this coming, the news that prices will not drop from the rises in the autumn will still be disappointing to many as we move into the colder months.”
National Energy Action director of policy and advocacy Peter Smith said: “The current cold spell is already having a devastating impact on the most vulnerable people.
“With unaffordable energy bills and far less support available nationally this winter, millions of people are already rationing their energy use to dangerous levels or getting deeper into debt trying to keep warm.
“With increased wholesale prices in the last few months, it is no surprise that there will be no let-up in the unaffordable cost of energy. The most vulnerable people will sink into further difficulties and acute hardship.”
