Ofgem confirmed household bills are to rise again
In an announcement yesterday, November 22, Ofgem confirmed household energy bills are to rise again from January 1 as it 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 increasing from £1,717 to £1,738-a-year, or by around £1.75-a-month.
The government regulator has 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 in February 2022.
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The impact of these changes will vary from household to household though, depending on how much fuel you use. Standing charges are falling by 1p for gas and 2p for electricity. The unit price for gas, however, is rising by 10p per kilowatt hour (KwH), which is a rise of 1.6%. The unit price for electricity is rising by 36p per KwH, a rise of 1.5%.
You can estimate how much your bill will increase from January using our energy bills calculator. Based on the values that you have entered, the calculator will estimate what your monthly bill from January will be
Speaking yesterday, Tim Jarvis director general of markets at Ofgem, said: “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households. 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 Russia 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.”
