Yahoo News Check how much extra you'll pay for your energy after rise in Ofgem price cap from January
Energy bills are going up from January after Ofgem announced a rise in the new energy price cap - use our calculator below to see just how much you will have to pay.
Ofgem changes the price cap every three months, with the latest one set to take effect on January 1 and continue through to March 31. That cap will be set at an average of £1,738 annually for a typical dual-fuel household paying by direct debit. This represents an average increase of 1.2% per household or £21 per year.
Despite the increase though, bills are expected to be around 10.0% cheaper than they were at the same time last year. The impact of these changes will vary from household to household though, depending on how much fuel you use.
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Standing charges are falling by 1p for gas and 2p for electricity. The unit price for gas, however, is rising by 10p per kilowatt hour (KwH), which is a rise of 1.6%. The unit price for electricity is rising by 36p per KwH, a rise of 1.5%.
You can estimate how much your bill will increase from January using this energy bills calculator.
Tim Jarvis, director general of markets at Ofgem, said: "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 customers to bring their bill down so please shop around and look at all the options.
"Our reliance on volatile international markets - which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate. So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability. In the short term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them."
Meanwhile, consumer expert Martin Lewis has urged households to do "one simple thing" after Ofgem announced the rise in its energy price cap. He is asking households to take action now and lock into a fix to save money. His advice can be found here.
