Energy bills are set to rise (Image: Getty)
are to rise again from January 1 after announced a 1.2% increase to its price cap.
The regulator said the increase would see the typical bill for a household in England, Scotland and Wales rise from £1,717 to £1,738-a-year, or around £1.75-a-month. It follows the price rising by 10% in October.
Ofgem urged customers to take advantage of increasing choice among suppliers and look for the best deal to help keep their bills down, saying households could save up to £140.
The latest price cap is 10% or £190 lower than a year earlier, and 57.2% or £2,321 less than during the energy crisis, which was fuelled by ‘s invasion of in February 2022.
But it comes as millions of pensioners face a winter with less support, after the Labour Government decided to scrap winter fuel payments for those who do not receive pension credit or other benefits.
You can use our energy price calculator to find out how much your bill will rise by, according to Express.co.uk‘s estimate, below.
Tim Jarvis, Director General of Markets at Ofgem, said while today’s change means the cap has remained relatively stable, the regulator understands the cost of energy remains a challenge for too many households.
He added: “However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.
“Our reliance on volatile international markets – which are affected by factors such as events in and the Middle East – means the cost of energy will continue to fluctuate. So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.
“In the short-term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”
National Energy Action Chief Executive Adam Scorer said news the price cap is rising by 1.2% will impact millions of vulnerable households, with bills around 50% higher than pre-crisis levels.
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Britain’s reliance on international energy markets means ‘prices will continue to fluctuate’ (Image: Getty)
He added: “With temperatures now plunging and far less support available many are getting deeper into debt trying to keep warm. Now we know there will be no let up into January and beyond. Targeted government support is essential to save millions from the misery and danger of a cold home.”
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets, with the regulator confirming the level for the first quarter of next year on November 22.
The energy price cap was introduced by the Government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills, because householders still pay for the amount of energy they consume.
Which? Energy editor Emily Seymour said: “It’s still worth shopping around for energy deals – look out for any that might be cheaper than the January price cap when it comes into effect.
“Unfortunately, there’s no ‘one size fits all’ approach when it comes to fixing an energy deal – it will all depend on your individual circumstances.
“You should compare what your monthly payments would be on a fixed deal with what you’d expect them to be if you remain with the price-capped variable tariff to see what the best option is for you.
“As a rule of thumb, we’d recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees.
“If you’re worried about affording your bills this winter, don’t suffer in silence. Speak to your energy company – they are obliged to help you if you’re struggling to pay your bills.”