Ofgem has announced that the energy price cap will increase from January 1 – and we want to know, are you worried?
Millions of people across the UK will see their energy bill soar by 1.2 percent from next year, after Ofgem announced its new price cap – and we want to hear your thoughts.
The average dual household, paying by direct debit, will fork out £1,738 on their annual bill from January 1 – an increase of £21 from the October to December cap of £1,717. The latest announcement marks the second increase in energy bills in recent months, after the price cap soared by 10 percent in October – up by around £149.
The price cap sets the maximum rate energy firms can charge per kilowatt (kWh) hour for gas and electricity households use, along with standing charges. Standing charges are what you have to pay no matter how much energy you use.
The price cap covers 26 million households across Britain, and is updated every three months, meaning the new rates will remain in place until March. 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.” Cornwall Insight analysts told the BBC that high domestic energy prices are likely to be “the new normal” due to “geopolitical tensions, bad weather and maintenance taking place on Norwegian gas infrastructure”.
However, it comes during the coldest months and at a time when millions of pensioners have been stripped of their Winter Fuel Payment, worth up to £300. Dame Clare Moriarty, chief executive of Citizens Advice, added that families and people with disabilities faced “impossible choices”.
She said: “For bills to remain at this high level… and with an expectation that they’ll remain at that level for the foreseeable future, we’re just expecting to see people continuing to be really squeezed.” David Southgate, policy manager at disability equality charity Scope, echoed: “Life costs a lot more when you’re disabled, because of needing to use more heating to stay warm and healthy, or charging vital equipment like wheelchairs and breathing machines.
“Our disability energy support services are hearing from disabled people who have cut back everything they can and racked up huge amounts of debt. The Government urgently needs to step in and bring in discounted energy bills for disabled people.”
Campaigners have called on the government to do more to address fuel poverty, as households face energy bills that are 50 percent higher than pre-Covid levels. Following the latest Ofgem announcement, we want to know if you are worried about another rise in energy bills? Vote in our poll HERE to have your say.
The Mirror will also be discussing the topic with you in the comments section below and you can join in! All you have to do is sign up, submit your comment, register your details and then you can take part.
