UK Energy Bills Set to Fall Briefly Before Grid Costs Bite Again

UK energy bills are set to fall slightly in January, but the relief may be short-lived as rising spending on power grids could push costs higher just a few months later.

Higher energy bills are not the news UK Chancellor Rachel Reeves wants as her government agonizes over tax cuts days before her major budget announcement. Reeves has said she will act to ease the financial squeeze on Britons and is considering a range of measures to reduce electricity and gas costs. These could include adjustments to tax and climate levies, according to a person familiar with the matter.