Energy UK has again warned the government about the increasing economic cost of high energy bills, with predictions indicating the largest rise in four years coming in January. Projections suggest a significant increase of around £350 for a typical household, pushing the annual bill to approximately £2,100.
This week, the current price cap, which is in effect until the end of December, rose by 4%, equivalent to £60 a year for a typical household. However, the anticipated January increase would bring annual bills close to the level at which the government previously intervened following Russia’s invasion of Ukraine.
In new analysis titled 'Economic defence: tackling energy bills in winter 2026/27', Energy UK highlights that customer debt is expected to reach a record £7 billion by the end of the year. The industry association is urging the government to learn from the previous crisis and act now to avoid a repeat of the £36 billion spent supporting households in winter 2022/23.
Energy UK is advocating for action across three key areas: additional targeted support, an ambitious energy debt strategy, and removing levies from electricity bills. Dhara Vyas, Chief Executive of Energy UK, stated that the ongoing conflict in the Middle East and its effect on energy costs are negating savings from government measures like removing policy costs and VAT.