Average Annual Energy Bills Forecast to Top £4,200 by January

The average annual energy bill for a British household is expected to go beyond £4,200 by early next year, according to the latest forecasts.

Energy bills have become a major source of financial difficulty for millions of households across the UK over the course of this year, with demands for gas and electricity services having been soaring now for several quarters.

Expectations have been for some time that energy bills would rise sharply again towards the winter months but the latest forecasts point to even greater price increases than had been widely anticipated.

For huge numbers of people, the price rises will be tough to bear but for those with problem debts and low incomes, the extra costs will be even more difficult to cope with.

The latest forecasts on what average energy bills will look like in early 2023 have come from the consultancy firm Cornwall Insights, which has analysed the current dynamics across the UK’s energy markets and the methodology used by the market regulator Ofgem.

According to the company, the average household in England, Scotland and Wales will be asked to pay the equivalent of £4,266 per year during the first three months of next year.

Increased energy bills will inevitably have a big impact on individual household finances in Scotland and elsewhere but the rising cost of gas and electricity is also expected to pile huge pressure on to businesses across industries.

Indeed, there are expectations now that steeply rising energy bills will be enough to force a significant number of Scottish firms out of business entirely in the coming months.

Reflecting on his company’s own predictions on how much bills might soon increase, Dr Craig Lowrey from Cornwall Insights said: “It is essential that the government use our predictions to spur on a review of the support package being offered to consumers.

“The government must make introducing more support over the first two quarters of 2023 a number one priority,” he added.

If you live anywhere in Scotland and you are struggling to manage your personal debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.