Energy bills are expected to rise for UK households from the start of January as Ofgem’s latest price cap comes into force.
Following consecutive declines to £1,834 in October, dual-energy customers face the first increase in prices since last January under the new £1,928 cap.
This represents a maximum of what suppliers can charge consumers, with the £1,928 figure an average of what households would pay over a year on such rates.
Consumers will be charged 7.42 per unit of gas and 28.62p for electricity until March, compared to 6.89p and 27.35p respectively since October.
Suppliers also charge daily standing rates of 53p for electricity and 30p for gas, with these rates unchanged under the new cap, which came into force on Monday.
“Customers can expect to start paying even more to keep the lights on and homes warm,” Alastair Douglas, chief executive of comparison site TotallyMoney, commented.
Though prices fell last year, these were receding from record levels, with the latest £1,928 cap significantly higher than the pre-pandemic and pre-Ukraine war cap of £1,137, set in January 2019.
“Two years of high inflation has already pushed people’s finances to the brink,” Douglas added, “and energy debt has since reached record levels.
“The government regulator has instructed energy companies to contact struggling customers and offer support - but that doesn’t mean you have to wait for them to reach out.”