Millions of households will see a slight rise in gas and electricity prices at the height of winter, after regulator Ofgem outlined its next price cap.
The 0.2% increase from the current cap will take effect at the start of January, and affect those on variable tariffs in England, Wales and Scotland.
However, prices will be slightly lower than the same period the previous year.
Gas and electricity bills remain relatively high, and the sudden drop in temperature has brought the costs to the forefront of people’s minds.
The cap sets the maximum price that can be charged for each unit of gas and electricity, not the total bill – so those who use more energy, pay more.
The Ofgem cap is illustrated 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 illustrative household would see a £3 rise in its annual bill from £1,755 to £1,758.
However, the amount used varies significantly between households, so the best way to calculate the change is to work out the percentage change from your own usual annual bill.
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