United Kingdom: Cornwall Insight Predicts an Increase in Energy Price Cap for January 2025

Cornwall Insight anticipates a rise in the energy price cap to £1,736 in January 2025. This persistence of high prices reflects an unstable market and exacerbates energy poverty in the United Kingdom.

Share:

Cornwall Insight, an energy consultancy firm, has released its final forecast for the UK’s January 2025 energy price cap. According to these estimates, the cap will reach £1,736 per year for an average dual fuel consumer, a slight increase of 1% compared to the October tariff set at £1,717.

This apparent stability hides the ongoing volatility of the energy market. Geopolitical tensions, interruptions in Norwegian gas infrastructure, and unpredictable weather conditions continue to keep prices well above historical averages. Despite moderating compared to the last two years, British households will continue to face high energy bills this winter.

Energy Poverty: A Persistent Crisis

The persistence of high prices intensifies the struggles of the most vulnerable households. This winter, many families may avoid heating their homes to recommended temperatures, potentially leading to serious health issues. Dr. Craig Lowrey, Principal Consultant at Cornwall Insight, emphasizes the urgent need for tailored government interventions.

Possible measures include the implementation of social tariffs or a revision of the price cap mechanism to provide immediate relief. Reforming the social benefits system is also suggested to more effectively target the most at-risk households.

Accelerating the Energy Transition

To sustainably address these challenges, the UK government is focusing on the development of locally produced renewable energy. This strategy aims to reduce the country’s dependency on international wholesale markets. While this transition requires significant initial investments, it is considered essential for ensuring more stable energy bills in the long term.

However, this transformation cannot immediately address the needs of households currently facing energy poverty. Balancing urgent support with a long-term strategy remains a complex challenge.

2025 Forecasts

According to Cornwall Insight, a slight decrease in the price cap could occur in April and October 2025. However, prices are expected to remain significantly above historical levels, confirming that British households will need to adapt to a “new normal” in energy costs.

In this context, pressure is mounting on the government to propose balanced solutions capable of providing immediate assistance while advancing energy transition goals. The dual challenge is ensuring affordable access to energy for all while building a sustainable and secure system for the future.

  • Populaires ​
Glencore in talks with London over future of insolvent Lindsey oil refinery
US oil inventories unexpectedly rise by 3.8 million barrels
Global Oil Exploration Investments Decline, a First Since 2020
TotalEnergies sells 50% of its renewable assets in Portugal for €178.5mn
Madagascar signs with Global South Utilities to develop up to 250 MW solar
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
Czech Republic hit by massive power outage disrupting the economy
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
France anticipates significant slowdown in emission reductions starting in 2025
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING