Household energy bills are expected to drop very slightly in January, according to new forecasts.
But analysts at specialist consultancy Cornwall Insight said they expect the price cap to tick higher again from April.
Experts have said energy regulator Ofgem’s price cap is expected to dip by 1% when its next update takes effect.
It would result in a £22 decrease to an average bill of £1,733 a year for a typical household from January.
Craig Lowrey, principal consultant at Cornwall Insight, said: “January’s price cap dip might look like good news but it’s only part of the picture.
“Bills are still well above pre-crisis levels and are set to climb again in April, and this time it’s not higher wholesale prices driving the rise.”
Do give this a listen, there are so many small actions with big impact you can make and end up many £100s a year better off with ease. Plus you get to hear my whinge about AI chat bots! https://t.co/7UYvL15esU
— Martin Lewis (@MartinSLewis) November 13, 2025
The predicted fall in the price cap in January has been linked to a slight drop in wholesale energy prices.
It would also come despite the expected introduction of the Nuclear Regulated Asset Base (RAB) levy to help fund the next generation of new nuclear power stations, which is expected to add around £10 a year to bills.
Cornwall Insight suggested April’s price cap is likely to rise by around £75 a year for an average household, based on its most recent estimates.
It said this would be “largely due to rising charges associated with the operation and maintenance of the country’s energy networks, specifically electricity transmission and gas distribution charges”.
Recommended reading:
- Martin Lewis' key savings safety update happening on December 1 for all accounts
- Martin Lewis 'comes home' for his ITV Christmas and Black Friday special
- Is Cloudflare down? Thousands report issues with X and Canva reporting an outage
Mr Lowrey added: “The shift to renewables will bring long-term stability and energy independence, but it’s not free.
“The upfront costs are real, and they’re landing on bills now.
“The challenge will be balancing short-term affordability with long-term resilience, and crucially making sure people understand why that trade-off matters.”
Share