Energy bills expected to rise again in the new year

Energy bills could be hiked yet again from 1 January as rising wholesale costs push up prices for households.

- HOWARD MUSTOE

Analysts at Cornwall Insight predict prices will rise 1 per cent, or about £19, to £1,736 a year for the typical home. The increase comes on top of a 10 per cent hike from October.

After October’s increase, analysts had estimated that prices would drop in the new year, but a few factors have combined to push up prices. Energy prices have been kept high by tensions in Ukraine and the Middle East, plus rising wholesale gas prices. Other factors driving up prices include weather disruption and some energy plants being offline for maintenance.