Energy bills to rise in January as price cap jumps
Ofgem has announced that energy bills from the new year will rise by 5%, or £94 annually for the average payer, with many households likely to be paying more than they did a year ago.
The new energy price cap for the typical household will go up from £1,834 to £1,928 a year in the first quarter of 2024.
While this is lower than the £2,380 In the same period of 2023, households received discounts of £66 a month via government support. Daily standing charges were also slightly lower last winter.
The regulator’s price cap affects 29 million households in England, Wales and Scotland.
BFY, an energy consultancy, says the rise means two-thirds of households will pay more for energy in the first quarter of 2024 than they did in the same period of 2023.
It estimates that low energy households will see their bills rise by 27% from £350 in the first quarter of this year to £445 in the first quarter of next year.
Those who have a high level of energy use should see their total spending over the first quarter of 2024 fall by 5.2% to an average of £912, compared with £962 in the same period of 2023.
Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: “An ‘average household’ is now paying £800 more per year to heat and power their homes since the start of the energy crisis.”
Forecasters suggest that the typical bill will fall to £1,853 from the start of April, but will not drop below today’s level until July next year.