ENERGY prices are to rise again in January while suppliers stuff their pockets with billions in unearned profits.

Watchdog Ofgem is expected to announce an increase in its energy price cap by 1 per cent from January 1, according to energy consultancy Cornwall Insight today.

This would add £19 to the current average annual household bill of £1,717 and comes on top of a 10 per cent rise in October, it said.

The consultancy called for government funding to help the poorest and most vulnerable customers.

Millions of pensioners are facing a winter with less support after the government limited winter fuel payments to those receiving pension credits or other benefits.

The decision will hit around 10 million pensioners who will lose payments of up to £300 this year.

Craig Lowrey, principal consultant at Cornwall Insight, said: “While we may have seen this coming, the news that prices will not drop from the rises in the autumn will still be disappointing to many as we move into the colder months.”

He called for the government to help protect the vulnerable and tackle energy supply for the long term.

Mr Lowrey said government action such as social tariffs, adjustments to price caps, benefit restructuring or other targeted support for vulnerable households must be considered.

“The government needs to keep momentum on the transition [to green energy] while acknowledging that immediate support is essential for those struggling now,” he said.

“Inaction is a choice to leave people in the cold.”

Peter Smith, of fuel poverty charity National Energy Action, said: “The current cold spell is already having a devastating impact on the most vulnerable people.

“With unaffordable energy bills and far less support available nationally this winter, millions of people are already rationing their energy use to dangerous levels or getting deeper into debt trying to keep warm.

“The most vulnerable people will sink into further difficulties and acute hardship.”

Prices rocketed in April 2022 after Russia invaded Ukraine. In Britain, energy companies increased their prices by 54 per cent.

The End Fuel Poverty Coalition said in April that energy suppliers in Britain had pocketed £420 billion in profits since the crisis.