Energy bills forecast to rise by £85 a year

Published On Feb 18, 2025, 7:40 AM

Domestic energy prices are projected to rise by 5% starting in April, which will increase the average household energy bill by £85, according to Cornwall Insight. This will bring annual energy costs for a typical household to £1,823, coinciding with similar increases in water and council tax bills. The price cap, set by Ofgem, will affect 26 million households on default tariffs, with an official announcement coming on February 25. The rise in energy costs comes amid financial difficulties for households, with many owing significant amounts to energy suppliers.

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The rise in energy prices will likely lead to increased operational costs for energy companies, potentially affecting their profitability. However, as more households look to lock in fixed tariffs or change providers due to escalating bills, this could stabilize demand for certain utilities. Investors might consider energy companies that perform well during price surges.

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