Forecasts indicate a substantial rise in energy bills for the first three months of 2027. Energy consultancy Cornwall Insight predicts an average dual-fuel household bill of £1,999, while big supplier EDF suggests it could reach £2,076.
This represents an approximate 18% quarter-on-quarter increase in the unit rate, compared to the current quarterly price cap of £1,723, which takes effect from Thursday.
Energy Secretary Miatta Fahnbulleh acknowledged the challenges, stating that there is a question about costs and how to recover them fairly. Unpaid consumer debts in the energy system are projected to reach £7bn by the end of this year.
The Warm Homes Discount scheme, which provided £150 to 5.5 million low-income households last year, is considered inadequate for the anticipated bills. A social tariff or discount scheme has been proposed by various organisations as a more targeted solution for vulnerable households.