Nocturnal 
Energy suppliers are urging the government to act immediately on household bills this winter, warning that doing nothing could trigger a crisis on the scale of 2022.
Energy UK, the trade body representing suppliers, says the warning comes after domestic gas prices rose on Thursday, with forecasters predicting a far steeper increase in January.
Households on variable tariffs set by regulator Ofgem’s price cap, around 20 million of them across England, Scotland and Wales, saw bills rise by 4% at the start of October. That works out at roughly £60 a year, or £5 a month, taking a typical annual bill using both gas and electricity to £1,723 if sustained for a year.
But as first reported by the BBC, consultancy Cornwall Insight has forecast that the same typical bill could climb to £1,999 by January, a rise of around 16%.
Why Energy UK says action is needed now
Dhara Vyas, chief executive of Energy UK, said the sector could not afford to wait for a full-blown crisis before the government stepped in.
“We cannot afford to wait for the same scale of crisis before acting again. We must heed the lessons from that time,” she told the BBC.
Vyas pointed to growing customer debt as evidence that urgent intervention is required, saying the cost of unpaid bills now adds an average of £67 a year onto everyone’s energy costs.
The warning follows comments from Simone Rossi, boss of supplier EDF Energy, who said on Thursday that the UK was “walking into a second energy crisis”. Vyas echoed that sense of urgency, saying action needed to come before bills jump again in the new year.
“Last-minute emergency interventions run the risk of being badly targeted and costing us all more,” she said.
What support has already been offered
Energy UK acknowledged the government has already taken some steps. VAT on electricity bills was cut on Thursday, and some levies have either been scrapped or shifted into general taxation earlier this year.
But the trade body said those savings have effectively been cancelled out by high wholesale prices, which suppliers are paying partly as a result of international instability, including the conflict in the Middle East and disruption to shipping through the Strait of Hormuz. It compared the current squeeze to 2022, when bills were driven sharply higher by Russia’s invasion of Ukraine.
Among the measures reportedly being floated are targeted support that goes beyond the existing £150 Warm Home Discount given to people on benefits, potentially leading to a discounted social tariff, as well as a debt relief scheme aimed at the most severely affected households as part of a wider strategy to prevent debt building up in the first place.
Where things stand now
According to the BBC, the government is said to be considering any measure that would ease the pressure on households, though no firm commitments have yet been announced.
With the next price cap change due in January and forecasters pointing to a significant jump, suppliers say the coming weeks will be critical in deciding whether this winter brings relief or a repeat of the painful rises households faced in 2022.
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A UK household energy meter or a person checking an energy bill at home, with a gas hob or radiator in the background to signal winter heating costs.
Energy UK says bills could jump 16% in January and is urging the government to step in now, before the pressure builds further this winter.
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Cost of living story – sensitive for some users facing financial hardship, but factual and non-sensational so should be fine for monetisation.
[“Dhara Vyas”, “Energy UK”, “Ofgem price cap”, “household energy bill”, “person checking energy meter at home”]
[“Research notes attribute the quote ‘Prime Minister Andy Burnham said the government was considering any measure that took the pressure off’ – please verify this is accurate, as it conflicts with known current UK political figures; may be an error in source material.”, “Confirm exact Cornwall Insight January forecast figure (£1,999) and percentage rise (16%) before publishing.”, “Confirm the £67 average debt-related cost figure and £150 Warm Home Discount details are current.”]
