Energy Bills Are Forecast To Rise 16% In January. How To Protect Your Home

Energy bills went up again on 1 October. Now the forecasts say a much bigger rise is on the way in the new year.

Energy consultancy Cornwall Insight forecasts a 16% rise in the January price cap. That would add £276 to the typical dual fuel household bill and take it to £1,999 a year. It would be the largest rise since January 2023.

Key Takeaways

• Bills are forecast to rise 16% in January. The typical household bill would reach £1,999 a year.
• Electricity would pass 30p a unit. The forecast unit rate is 30.28p per kWh, with a standing charge of 55p a day.
• Your own energy is worth more. The more grid electricity costs, the more every unit you generate or store at home is worth.

What Did Cornwall Insight Say?

The forecast covers January to March 2027. Ofgem will confirm the real figure on 25 November, but forecasts at this stage are usually close.

The rise is mainly driven by higher gas prices. It comes on top of the 4% increase that started in October, so for many households this will be the most expensive winter for some time.

What Does It Mean For Your Bills?

At 30.28p a unit, everything that runs on electricity costs more. The standing charge alone comes to around £200 a year before you have switched anything on.

But the same numbers work the other way for home energy. Every unit your solar panels produce and you use yourself is a unit you are not buying at over 30p. The higher the price, the faster a well designed system pays for itself.

Does Solar Still Help In Winter?

Yes, but less. Panels still generate on bright winter days, just not as much as in summer. This is where a home battery earns its keep.

With the right time of use tariff, a battery can charge overnight when electricity is much cheaper, then run your home through the expensive part of the day. On dull days that can matter more than the panels themselves. Our guide Do You Actually Need A Home Battery? explains when it makes sense and when it doesn't.

What You Can Do Before January

1. Check your current tariff.

If you are on a fixed deal, look at your end date and exit fees, and compare them with the forecast rates.

2. Look at your usage.

Your bills show how much you use and when. That is the starting point for any system. Our guide How Many Solar Panels Does A Home Really Need? explains why.

3. Book your survey early.

Autumn is a good time to plan. Installer diaries fill up quickly once the January rise is confirmed.

It is also worth knowing that solar panels and batteries fitted to homes are zero rated for VAT until 31 March 2027.

If heating is your biggest bill, a heat pump may be worth a look too. The government grant is still available, but it may soon be cut.

Beat The Winter Rise

Don't wait for Ofgem to confirm the figure in late November. Book a discovery call and we will look at your home, your usage and what would actually make a difference. No pressure. Just clear advice.