{"id":751670,"date":"2026-08-27T18:40:22","date_gmt":"2026-08-27T18:40:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/751670\/"},"modified":"2026-08-27T18:40:22","modified_gmt":"2026-08-27T18:40:22","slug":"energy-bills-could-be-more-than-200-higher-by-2027-experts-warn","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/751670\/","title":{"rendered":"Energy bills could be more than \u00a3200 higher by 2027, experts warn"},"content":{"rendered":"\n

Households face another sharp rise in energy costs<\/a> in the new year, experts have warned, forecasting an increase of more than \u00a3200 above the current level. <\/p>\n

Ofgem’s energy price cap will rise in October to \u00a31,723, the regulator confirmed on Wednesday<\/a>, an increase of four per cent from the current \u00a31,663. <\/p>\n

The \u00a360 rise comes as millions of Brits continue to struggle with the cost of living, which Andy Burnham has made a priority of his government. <\/p>\n

One of the new prime minister’s first moves was to announce a temporary cut to VAT on energy bills, saving \u00a345 a year for the average household. <\/p>\n

Sir Keir Starmer’s government also announced a reduction of \u00a3150 on average to bills at last year’s budget through the scrapping of two energy efficiency schemes, which began in April 2026. <\/p>\n

\"The<\/a> The price cap could reach \u00a31,872 a year by January 2027 (Alamy\/PA) <\/p>\n

But another rise of \u00a3149 could be expected in January, according to trusted forecaster Cornwall Insight, nine per cent higher than the October rate. <\/p>\n

This would bring the price cap to \u00a31,872 a year \u2013 and virtually cancel out the recent government initiatives. <\/p>\n

The energy<\/a> price cap is the maximum amount suppliers can charge for each unit of energy to those on a standard variable tariff, which applies to most households<\/a>. It is expressed as an annual bill for the average home, but the headline figure is not the maximum yearly bill. <\/p>\n

The energy regulator updated its methodology to calculate the cap in July, reflecting lower average usage levels. Under its old methodology, the Cornwall Insight forecast would equal \u00a32,107. <\/p>\n

This is only a few hundred pounds lower than the \u00a32,500 level at which the government decided to intervene in 2023 with its energy price guarantee. This kept costs at this level for nine months despite the price cap rising to more than \u00a34,000 during the energy crisis sparked by Russia’s invasion of Ukraine, costing the government \u00a32.9 billion. <\/p>\n

\"Energy<\/a> Energy secretary Miatta Fahnbulleh said the government will continue to assess the situation (Getty) <\/p>\n

Costs have now started to rise again, more steadily, sparked by the ongoing US-Iran war which began in February. The effective blockage of the Strait of Hormuz \u2013 through which 20 per cent of the world’s oil is shipped \u2013\u00a0has hit energy markets across the globe. <\/p>\n

In the face of rising costs, the Resolution Foundation has urged Mr Burnham to introduce a targeted scheme to cut bills <\/a>for households struggling over the winter. <\/p>\n

Unlike the energy price guarantee, this would be means-tested based on income, saving an average of \u00a3175 for the households most affected by rising costs, the influential think tank said. <\/p>\n

Energy secretary Miatta Fahnbulleh said: “Families will be understandably concerned about the cost of energy bills<\/a> this winter, which is being driven up by the Iran War. <\/p>\n","protected":false},"excerpt":{"rendered":"Households face another sharp rise in energy costs in the new year, experts have warned, forecasting an increase…\n","protected":false},"author":2,"featured_media":751671,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[19306,84,1294,5363,47811,248244,12593,56,54,55],"class_list":["post-751670","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-andy-burnham","tag-business","tag-economy","tag-energy-bills","tag-energy-price-cap","tag-miatta-fahnbulleh","tag-price-cap","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/751670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=751670"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/751670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/751671"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=751670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=751670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=751670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}