HOUSEHOLD energy bills are expected to drop slightly by £22 in January bringing relief for millions.
But experts are also warning that bills could rise by £75 next spring.
Analysts at Cornwall Insight have said energy regulator Ofgem’s price cap is expected to dip by 1% in January, taking the average bill for a typical household down to £1,733.
Experts at the specialist consultancy also said they expect the price cap to tick higher again from April.
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.”
Meanwhile, USwitch director Richard Neudegg warned that household face having their bills hiked by £75 in the spring.
“Energy prices look set to remain high into the new year, with little respite for households struggling as the winter cold sets in.
“Ofgem is expected to confirm the January price cap later this week, but April is when we could expect a significant increase.
“Forecasts suggest we could be looking at a hike of £75 in spring to pay for energy network maintenance and upgrades,” he said.
The predicted drop in energy bills comes after bills rose by 2% on October 1 to £1,755 under the price cap.
This was an increase of £35 from the July price cap.
It was also higher than the 1% rise predicted by experts at Cornwall Insight.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
Only households on standard variable tariffs, which is over 35million households, are impacted by the price cap change.
Those on fixed tariffs don’t see their bills go up or down.
The government is said to be looking to find ways to bring energy bills down for millions of struggling households.
Measures on the table include cutting the 5% VAT households pay on their gas and electricity, and stripping out green levies that drive up prices.
“There have been rumours the government may cut the 5% VAT on our energy bills — not factored into this forecast — but households will have to wait and see what’s announced in the Budget next week,” Neudegg added.
How to bring down your energy bill NOW
Neudegg warns “far too many” are paying more than they need to for their energy.
One way you could make immediate savings is by switching from a standard variable tariff to a fixed tariff.
“There are currently 26 fixed deals that undercut the current October price cap, which offer savings of around £185 for the average household,” he added.
To find the best fixed energy deals, you should start by visiting price comparison websites, such as Uswitch.com and MoneySavingExpert.
Enter your postcode and current energy usage details to receive a list of available deals tailored to your needs, which should take you less than five minutes.
You’ll then be able to compare the rates, contract lengths, and any additional features or benefits offered by each deal.
Next, visit the websites of individual energy suppliers to check if they have exclusive deals that are not listed on comparison sites.
Sometimes, suppliers offer special promotions or discounts directly to customers.
Compare these offers with those on the comparison websites to ensure you get the best possible rate.