DEVELOPING: Energy Price Cap Set to Spike in New Year, Leaving Households Reeling

Breaking News: Energy Price Cap Set to Spike in New Year Millions of households in England, Wales, and Scotland face a 0.2% rise in gas and electricity prices at the start of January. The increase, announced by regulator Ofgem, will affect those on variable tariffs. The new price cap will take effect on January 1. The rise comes as a surprise, as forecasters had suggested the cap may fall at the start of the year. However, Ofgem attributes the increase to government policy costs and operating expenses. Gas and electricity bills remain relatively high, with wholesale energy costs making up the largest portion of bills. Ofgem's Tim Jarvis said, "While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices." Prices will be slightly lower than the same period last year, but consumers are advised to shop around for fixed tariffs to reduce their bills. The price cap change is a result of Ofgem's quarterly review, which takes into account various factors, including wholesale energy costs and government policy. The regulator will continue to monitor the energy market and make adjustments as necessary. This is a developing story, and we will provide updates as more information becomes available.