Energy bills across the UK are expected to rise at the beginning of 2025. analysts predictputs further pressure on household finances.

Experts Cornwall Insight warn higher energy bills are on the rise It was determined as the ‘new normal’ and it is important that ministers look for ways to protect the most vulnerable.

Regulator Ofgem will set the price cap for January-March 2025 later this week. England, Scotland and Wales limit the amounts energy providers can charge.

Cornwall predicts the price cap for the average dual-fuel household will rise to £1,736 per year from current levels in January £1,717 per annum set in October.

This is a one percent increase on the current price cap; a blow to hopes the bills could come down early next year. Cornwall had previously predicted a one per cent drop to £1,697 but said “forecasts suggest prices will remain relatively high for the remainder of the winter”.

Craig Lowrey of Cornwall Insight said: “Supply concerns have kept the market as volatile as at the start of the year and surcharges have remained relatively stable, so prices have remained the same.

“While we have seen this coming, news that prices will not fall from autumn increases will still be disappointing for many as we head into the colder months.”

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He added: “We need to take action as it is widely accepted that high prices are here to stay.

“Options such as social tariffs, adjustments to price ceilings, benefit restructuring or other targeted support for vulnerable households should be seriously considered.”

Supply fears are linked to this war in Ukraine Conflict in the Middle East and planned maintenance in Norwegian gas fields bad weather outagesall impacting stable supplies.

Cornwall says that although prices have stabilized over the previous two years, the market remains highly sensitive to global events, resulting in prices well above historical averages.

It currently predicts the cap will drop slightly in April 2025 and again in October 2025.

He said ministers needed to find ways to protect vulnerable people from high energy bills, “whether through social tariffs, to align energy with telecommunications, through changes to the benefit system or a review of the price cap mechanism”.

Ofgem is reviewing the price cap, with possible changes to elements such as fixed charges expected next year.

Increasing renewable energy will provide a permanent solution to high energy bills by reducing dependence on the international wholesale market, Cornwall said, adding: “Although there will be upfront costs, this shift is crucial to building a sustainable and secure energy system for the future. “Renewables will be available over the next few years.” “We hope to see increasing progress in the energy transition.”

Uswitch.com’s Richard Neudegg warned that millions of people will face higher payments during the coldest months of the year. Consumers will be able to lock in their energy bills below January’s estimated price cap, he said.

“There are a number of fixed deals available for January that are significantly cheaper than the price cap, so it’s worth making a comparison to see how much you could save. The average household would currently save £120 a year compared to the current price cap by switching to a fixed deal.” “It can save up to 100,000,” he added.

Ofgem’s price cap affects 29 million households in England, Wales and Scotland. Different rules apply in Northern Ireland.