Energy bills are rising for millions of households in England, Scotland, and Wales as the new year began, following a slight increase in the energy price cap by Ofgem. Prices for those on variable tariffs are rising by 0.2% from now, which translates to a 3 annual increase for a household using a typical amount of gas and electricity, according to Ofgem.
The regulator's energy price cap sets the maximum price for each unit of gas and electricity for those on variable tariffs, not the total bill. Therefore, consumers who use more energy will pay more. Ofgem illustrates the cap with a household using a "typical" amount of 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit. This household would see a 3 rise in its annual bill from 1,755 to 1,758.
Campaigners expressed concern that billpayers are facing another winter of high energy prices, with the latest increase coinciding with the coldest period of the year. Kevin Peachey, cost of living correspondent, reported that changes announced in the Budget should mean a fall in the cost of energy from April. However, the amount of energy used varies significantly among households.
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