Energy bills for millions to rise in January after surprise price cap increase
Why energy bills are going up for millions despite expert predictions
- Ofgem has announced that household energy bills will increase by 0.2 per cent from 1 January, following a rise in its price cap.
- This means the average dual-fuel household in England, Scotland, and Wales will see their monthly bill go up by approximately 28p.
- The annual average bill for those on a default tariff will consequently rise to £1,758, an increase from the current £1,755.
- The increase is unexpected, as experts like Cornwall Insight had forecast a one per cent decrease in prices due to lower wholesale energy costs.
- Ofgem acknowledged that wholesale prices have fallen by four per cent over the past three months but noted that market conditions remain volatile.