This winter, millions of people will face a rise in their energy bills as Ofgem announces its new price cap. From January 1, the price cap will increase by 1.2%, meaning the average dual fuel household paying by direct debit will see their annual bill rise from £1,717 to £1,738 - an increase of £21.
This hike will take effect during the coldest months and comes at a time when millions of pensioners have lost their Winter Fuel Payment, worth up to £300. This is the second increase in energy bills in recent months, following a 10% rise - or an average of £149 - in October. Ofgem revises its price cap every three months, so these new rates will remain until March 31, when they will be reviewed again.
The price cap for those paying by pre-payment meter will rise from £1,669 a year to £1,690, while for those paying on receipt of bill, the figure will increase from £1,829 a year to £1,851. The price cap covers approximately 26 million households in England, Wales and Scotland. However, despite what its name suggests, the price cap does not actually limit how much you can pay for energy.
If you use more energy, you'll pay more - or use less energy, and your bill will be less, reports the Mirror . Tim Jarvis, director general of markets at Ofgem, stated: "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 cus.
