Households in Britain will pay more for gas and electricity from the new year after the energy price cap was increased.
Energy regulator Ofgem said that the typical annual bill would go up by £94, or 5%, from £1,834 to £1,928.
Covering January to March 2024, this price increase largely reflects higher wholesale costs for gas and electricity due to market instability and global events, particularly the war in Ukraine.
The price cap applies to around 29 million households in England, Scotland and Wales on default or variable rates.
Ofgem chief executive Jonathan Brearley acknowledged that the rise in bills would be “worrying” for many people, coming at a difficult time. Suppliers are expected to identify and offer help to those who are struggling with their bills.
Brearley added that customers may benefit from switching deals or suppliers.
“People should weigh up all the information, seek independent advice from trusted sources and consider what is most important for them whether that’s the lowest price or the security of a fixed deal,” he said.
Analysts have predicted that energy prices will come down again in March.
