This fall, energy bills in Great Britain are expected to further go up by 9% to £1,714 on average per annum for both gas and electricity. The projection is according to analysts from Cornwall Insight. Households in the country are, therefore, going to be grappling with higher charges right at the onset of winter, in a move seen to pile more financial pressure amidst continued anxiety over energy debt.

Energy bills across Great Britain are to rise by 9% this October, adding to further financial pressures facing households as colder months approach. Forecasts from the leading energy consultancy, Cornwall Insight, show the average annual bill for gas and electricity to go up to £1,714. That is a massive increase, as some of the current averages are at £1,568, which come as part of the quarterly price cap changes by the government.

Ofgem will confirm the new price cap formally by Friday, but assuming Cornwall Insight's forecasts are correct, energy bills for the average household would be £121 below last winter's cap of £1,835. That is still a long way above pre-crisis levels of £1,216 for the winter of 2020-21, before global energy markets were hit by the fallout from Russia's invasion of Ukraine.

What Does This Mean for Households?

This increase in energy costs could squeeze families hard, who are already squeezed by high prices. Energy debt has reached a record high, with the households of the UK owing more than £3 billion to energy suppliers. Successive years of price hikes have left people in a financial hole, and this upcoming winter does not look any different.

The news was not what people wanted to hear as we go into the colder months, said Craig Lowrey, principal consultant at Cornwall Insight. "Many were hoping for a return to more affordable prices after two consecutive reductions in the price cap." However, the energy market is so volatile that the price reacts quickly to any bad news, and it looks as though going back to pre-crisis prices is unlikely for the foreseeable future.

Furthermore, Lowrey wrote that although extreme prices of the past few years may be behind us, it is quite probable that the high costs we're seeing now could be the "new normal" without significant government intervention. Households will have to keep managing these increased costs with less support, unless something drastic changes.

Reduced Winter Fuel Allowance Adds to the Mix

Adding to the financial pressure is the government's recent decision to limit who can receive the winter fuel allowance. This payment, ranging from £100 and £300, had previously been extended to all pensioners. This winter, however, only pensioners receiving means-tested benefits will qualify for the winter fuel allowance. The move, announced by Chancellor Rachel Reeves, is expected to leave many older people facing higher energy bills without this much-needed financial help.

This winter, 2022-23, has seen the winter fuel allowance paid out to 11.4 million pensioners across 8.4 million households. Now hundreds of thousands of pensioners may find themselves struggling with rising energy costs; that is according to fuel poverty campaigners at National Energy Action, NEA.

Commenting on the development, Adam Scorer, chief executive of NEA, warned: "If these forecasts come forward as Ofgem confirms them, households will find their finances stretched beyond breaking point." He also mentioned that the rise in energy bills, coupled with reduced financial support, is going to push many families to the brink.

The Call for Urgent Action

Scorer also begged the UK government and the industry regulator, that is, Ofgem, to act radically now by slashing household debt and cutting energy prices on those most at risk. According to him, there is still a narrow window of opportunity to avert reproach, but action must be made urgently. This ban has been resisted by consumer groups, too, like NEA, protesting instead that standing charges are to be annulled. The daily fees apply regardless of the amount of energy used by households, and these charges have been related to causing frustration in many consumers.

The average standing charge for customers paying by direct debit is now 83% higher than in April 2019. These charges really sting lower energy users, such as those on prepayment meters. Campaigners say, too often, households have first to pay off outstanding charges before they can access more energy because of all that, literally in so many cases, it leaves them in the dark.

Will This Be the New Normal?

With all these challenges in place, the big question remains: are high energy bills here to stay? While experts like Lowrey are cautious about predicting a return to extreme pricing, they're not optimistic about a return to pre-crisis costs. The energy crisis has changed the scene fundamentally, and it is now obvious that without further intervention, households will have to adapt to higher bills as the "new normal."

Even if they do not scale the heights of recent years, some tough choices will still face families and pensioners wrestling with other essential expenses. And with winter on the corner, the challenge of keeping warm might turn out bigger for millions of people countrywide.

Now, the campaigners continue to call for immediate actions from the government and energy regulators on what to do next. Now, the main concern is making sure nobody will be left behind in what is looking to be another expensive winter.

Will energy prices ever return to what we once knew? That's the million-pound question. But for now, as the leaves turn and the mercury drops, households will have to batten down all hatches and prepare themselves for what's in store.