WINTER ENERGY COSTS SET TO RISE – Ofgem confirms January price cap increase impacting millions
Millions of UK households will see a slight rise in energy costs this winter, after Ofgem confirmed its new price cap. The cap will increase by 0.2% from January, affecting customers on variable tariffs across England, Wales, and Scotland.
The rise comes as a surprise after earlier forecasts predicted a drop. Ofgem says government policy and operating costs — including funding for the Sizewell C nuclear project — are behind the change.
Electricity unit rates will rise, while gas rates will fall slightly, meaning heavier electricity users will feel the biggest impact. For a typical household, the increase adds about £3 a year, bringing an annual bill to around £1,758.
Ofgem says wholesale prices remain volatile, and is urging people to shop around for better fixed-rate deals. Standing charges will also rise — up 2% for electricity and 3% for gas.
Citizens Advice says with bills still far higher than before the energy crisis, long-term reform is urgently needed.
