Will billing companies increase their price throughout the year?

When you were "looking at billing packages online" were looking looking at variable rate packages (often called SVR, for Standard Variable Rate) or fixed rates packages? The way those rates vary (or don't) is very different.

On a variable rate plan, the supplier can change the rate whenever they like (subject to a "rate cap" for some bills, which I'll touch on in a moment). On a fixed rate plan, the rate is fixed for a pre-defined period of time. For example, you could enter into a "2 year fixed rate" plan today, and the rate you pay would be fixed for 2 years. Or you could enter into a "3 year fixed rate" plan today, and the rate you pay would be fixed for 3 years. A variable rate plan doesn't have a duration (i.e. a number of years) - it just continues until it's cancelled.

The "rate cap" (which I mentioned earlier) applies to energy prices (i.e. gas and electricity) and caps (limits) the rate which suppliers can charge - but only for variable rate plans. The rate cap is reviewed every 6 months. Given the way energy prices are right now, I'd expect that every supplier's standard variable rate is charging the maximum allowed by the rate cap. Note, however, that the rate cap will increase from the beginning of April. The average UK household will pay 54% more for their energy than they would under the old rate cap. That's a big increase. So, be aware that any variable rate prices you've just looked up might only be valid for a few weeks. Also note that the rate cap might increase again in six months' time, when it's next reviewed.

So, if you want to be absolutely sure that your bills won't increase you'll want a fixed rate which lasts for however long you're planning to live in the flat. The catch is that right now fixed rates are very expensive. They're expensive because the supplier knows they can't increase the rate even if they rate they have to pay for gas and electricity increases - so they have to make a prediction about what prices are likely to be like during the life of the fixed rate and cover themselves accordingly. The general advice right now seems to be to opt for a variable rate (i.e. capped) plan, knowing that it will increase in April and almost certainly again in six months'. The gamble here being that you'd pay less overall this way than by "locking-in" a high fixed rate now. It's a gamble; no-one knows for sure.

I've mainly focused on energy bills, but you'll potentially also have to think about bills for phone, broadband, water, etc. If you can get those on a fixed rate which isn't too expensive, then go for it.

Finally, I've tried to use the word "rate" above because that's what's fixed - the price you pay per unit of power (assuming we're talking about energy). If we have a particularly cold winter and you have the central heating on 24/7 the amount you pay will increase (because you've used more power) even though the rate (price per unit of power) has remained the same.

Me and my friend are moving forward with this 2 bed student flat which is exclusive of bills.

Looking at billing packages online, it is only affordable for us if these prices do not continuously rise throughout our time living there.

Judging by the current economic situation, as gas is getting kinda pricey, is it likely that these billing package companies will increase their price after we choose them? or will the price stay fixed?