{"id":68976,"date":"2023-11-25T17:48:13","date_gmt":"2023-11-25T17:48:13","guid":{"rendered":"https:\/\/rapidcelnews.com\/?p=68976"},"modified":"2023-11-25T17:48:13","modified_gmt":"2023-11-25T17:48:13","slug":"energy-bills-to-rise-by-94-for-millions-in-january-as-new-ofgem-price-cap-confirmed-what-it-means-for-you-the-sun","status":"publish","type":"post","link":"https:\/\/rapidcelnews.com\/lifestyle\/energy-bills-to-rise-by-94-for-millions-in-january-as-new-ofgem-price-cap-confirmed-what-it-means-for-you-the-sun\/","title":{"rendered":"Energy bills to rise by \u00a394 for millions in January as new Ofgem price cap confirmed \u2013 what it means for you | The Sun"},"content":{"rendered":"

ENERGY bills are set to rise by \u00a394 for millions of households in the new year.<\/p>\n

The\u00a0energy\u00a0regulator\u00a0Ofgem\u00a0has confirmed the new price cap, which comes into effect on January 1.<\/p>\n

<\/p>\n

The cap will rise from \u00a31,834, the lowest figure since March 2022, to \u00a31,928 a year.<\/p>\n

It means the average household will see their annual\u00a0bill\u00a0increase by \u00a394.<\/p>\n

Around 4.3million households on prepayment meters will continue to receive a government-backed discount to ensure that they aren't charged more than those who pay by direct debit.<\/p>\n

It's important to note though that this is not a cap on the overall amount people will pay for their\u00a0energy.<\/p>\n

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Instead, it\u00a0caps the amount\u00a0that they pay per kilowatt hour, or unit, of\u00a0gas\u00a0and electricity.<\/p>\n

The \u00a31,928 figure is calculated based on what\u00a0Ofgem thinks an average household will use.<\/p>\n

This is calculated assuming that a typical household uses 2,700 kWh of electricity and 11,500 kWh of gas across a 12-month period.<\/p>\n

Those who use less will pay less, and those who use more will pay more.<\/p>\n

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Be aware that the exact unit rates and\u00a0standing charges\u00a0that you pay will vary slightly based on your supplier, where you live and how you pay for your gas and electricity costs.<\/p>\n

Jonathan Brearley, chief executive of Ofgem, said:\u00a0"This is a difficult time for many people, and any increase in bills will be worrying.<\/p>\n

"But this rise \u2013 around the levels we saw in August \u2013 is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay.\u00a0<\/p>\n

"It is important that customers are supported and we have\u00a0made clear to suppliers\u00a0that we expect them to identify and offer help to those who are struggling with bills."<\/p>\n

And energy bills are likely to be the highest they\u2019ve ever been for most homes this winter, according to Uswitch.<\/p>\n

Richard Neudegg, director of regulation at\u00a0Uswitch.com, said:\u00a0"This rate increase will bite during the coldest period of the year when households need to use the most energy.<\/p>\n

"The price cap will go up by\u00a05% from January due to the increases in the wholesale energy market.\u00a0<\/p>\n

"This means energy bills are likely to be the highest they\u2019ve ever been for most homes this winter.<\/p>\n

"Between January and March, average bills will be \u00a346 more expensive than the same period last year when the government\u2019s Energy Bill Support Scheme was in place."<\/p>\n

The news comes just a day after Chancellor Jeremy Hunt delivered his\u00a0Autumn Statement\u00a0and set out his plans for taxes and\u00a0spending.<\/p>\n

Unfortunately, there was no mention of energy support for the 29million homes paying Ofgem's price cap rates.<\/p>\n

In his Autumn Statement Jeremy Hunt announced:<\/strong><\/p>\n