Ofgem has announced household energy bills will rise slightly by 1.2 per cent from New Year’s Day. The sector regulator confirmed on Friday morning that annual energy bills for millions of households on the standard tariff, with typical average usage, will rise from £1,717 to £1,738 from January 1 - an increase of £21 over the coming year (£1.
75 per month). It’s crucial to remember that the price cap does not limit a household's total bills, people still pay for each unit of gas and electricity they use. This means the more energy you use, the higher the bill, similarly, the less you use, the lower the bill and even if you went a whole year without using gas or electricity, the daily standing charges alone cost around £338.
You are covered by the energy price cap if you pay for your electricity and gas by either: The announcement comes as analysis by Ofgem shows around 1.5 million households switched tariff over the past three months. The regulator is urging customers to take advantage of the rising choice in the market and look for the best deal to help keep their household bills down - by switching, savings of up to £140 are currently available.
Following a call by Ofgem in August for suppliers to offer more choice with low and no-standing charge tariffs, there has been an increase in the number of suppliers offering these kinds of deals. There are currently 8 available that are at least 10 per cent below the level set in the price cap. However, while these come w.