- Published
Household energy prices are set to soar in January, with a typical annual bill forecast to jump by £276, figures shared with the BBC reveal.
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figures → publish → BBC
The 16% predicted increase would hit millions of households at the coldest time of year, and would mark the biggest rise in bills for four years.
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increase → predict → years
The forecast from consultancy Cornwall Insight comes a day before prices go up under regulator Ofgem's October price cap and puts increased pressure on the government to support those who will struggle to pay.
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who → come → those
Meanwhile, the boss of supplier EDF Simone Rossi has warned the UK is "walking into a second energy crisis" and called for an extension to the VAT cut on electricity which kicks in on Thursday.
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which → warn → Thursday
Energy prices bite in winter
About 20 million households in England, Scotland and Wales are on variable energy tariffs set by Ofgem's price cap, which puts a maximum price on each unit of gas and electricity.
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which → bite → gas
Those homes will see a 4% increase in prices on Thursday, the equivalent of about £60 per year – or £5 per month – taking an annual bill to £1,723 for the typical household using both electricity and gas and paying by direct debit if this level was sustained for a year.
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level → see → year
That rise would have been higher without the government's VAT cut, which knocks the equivalent of about £45 a year off a typical bill.
But forecasts show a far greater increase is possible for bills in January.
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increase → knock → January
Cornwall Insight said its latest forecast suggests the typical annual bill would rise to £1,999.
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bill → say → 1,999
The forecast 16% rise will come at the worst time of year, according to Craig Lowrey, principal consultant at Cornwall Insight.
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rise → come → Insight
"These prices are going to hit households hard.
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prices → go → households
January is already a difficult month for many, with cold weather and bank balances still recovering from Christmas," he said.
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he → recover → Christmas
The predicted rise is the result of disruption of gas supplies owing to the conflict in the Middle East, and the resulting low gas storage levels in Europe.
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rise → predict → Europe
Rebuilding those stocks could mean high bills "well beyond the winter", the forecaster said.
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forecaster → rebuild → winter
Cornwall Insight has a strong track record on forecasts and is widely respected across the industry and politics.
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Insight → have → industry
Similar forecasts have been made by energy suppliers.
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forecasts → make → suppliers
This remains only a prediction at this stage.
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This → remain → stage
Ofgem will not announce the actual January price change until late November.
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Ofgem → announce → November
While an easing of tensions in the Middle East could lessen the pain for billpayers, the price setting period for the January cap is already halfway through.
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period → lessen → cap
With little sign of a truce or lower international energy costs, a big increase in prices for those not on a fixed tariff looks highly likely.
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increase → fix → tariff
Lowrey said a January rise was "all but certain".
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rise → say → ?
'Everything's going up'
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Everything → go → ?
"I try to eat less takeaways, work more overtime, and try to budget a bit better, but at the same time, we shouldn't have to," he said.
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he → try → time
Aaron drives a diesel car, and so is paying record high prices to travel to and from work.
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Aaron → drive → work
"I just feel like everything's going up.
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everything → feel → ?
How far is it going to go?
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it → go → ?
Someone's got to step in," he said.
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he → get → ?
"I know people who can't afford to heat their house and they're struggling at the moment.
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they → know → moment
Housing and eating are two of life's essentials that everyone should have.
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everyone → have → that
It shouldn't be a challenge to have any of those things."
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It → have → things
Years of relatively high domestic energy bills have left some people facing big sums in unpaid bills.
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Years → leave → bills
Recent data from Ofgem showed that customers collectively owe more than £5bn in unpaid bills and charges to suppliers.
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customers → show → suppliers
The regulator has a proposed debt relief scheme on the table, and campaigners keep telling them to get on with it, urging the government to provide funding for it to be implemented.
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it → have → funding
"This is unsustainable, not just for households but also for the market as a whole," said Adam Scorer, chief executive of fuel poverty charity National Energy Action.
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Scorer → say → Action
"The Budget must deliver additional targeted support for households most at risk this winter, alongside action to tackle energy debt and improve the least energy-efficient homes.
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Budget → deliver → homes
Among others calling for government help for struggling billpayers is Simone Rossi, chief executive of supplier EDF Energy.
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Rossi → call → Energy
Speaking exclusively to the BBC's Big Boss Interview podcast, Mr Rossi said: "We are actually walking into a second significant energy crisis after the one we experienced just four years ago."
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we → speak → one
He said that the government should extend the cut in VAT on electricity bills from 5% to 0% beyond April, when it is due to expire.
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it → say → April
He also urged ministers to give the go-ahead to the new Jackdaw gas field off the coast of Aberdeen, and the Rosebank oil field off Shetland.
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He → urge → Shetland
The government has consistently said that it will consider ways to offer breathing space to billpayers on the cost of living.
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it → say → living
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