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Daily Mirror
Daily Mirror
Business
Levi Winchester

Will my energy bill rise in January? Households confused after being emailed about change

Households have been left confused after being warned of energy bill rises coming into force from this weekend.

The regulator Ofgem has confirmed its price cap will increase by around 20% from January 1 - up from £3,549 a year for someone with typical use to £4,279.

But households are still covered by the Energy Price Guarantee, which means the typical bill will remain at roughly £2,500 a year until April 2023.

This means no one currently pays the full amount under the price cap - however, you may still see slight changes to your bill from January 1.

But these changes are likely to be minimal, meaning pennies more, rather than pounds, for most households.

This has left some people confused as suppliers start to email customers about the Ofgem price cap change in January.

Energy bills have sky-rocketed over the last year (Getty Images)

Your bill could change because there are regional differences in the Ofgem price cap rates, and the discount applied through the Energy Price Guarantee is a flat rate.

The Government will increase the discount it applies to energy bills from January - up from 17p per kilowatt hour to 31.8p/kWh for electricity, and from 4.2p/kWh to 6.4p/kWh for gas.

What you pay, and how your bill could change come January, depends on your supplier, where you live and how you pay for your energy.

It is also important to remember that the £2,500 figure is just used to illustrate how much the typical household will pay.

In reality, it all depends on how much energy you use - use more gas and electricity, and your bill will be higher, or use less and you’ll pay less.

On average, there will be no change in January for those paying by direct debit - with the typical bill under the Energy Price Guarantee remaining at £2,500.

For prepayment customers, the average figure will increase from £2,559 to £2,579 a year.

If you pay on receipt of bill - which is the most expensive way to pay for energy - the typical bill will increase from £2,715 to £2,754.

MoneySavingExpert has a breakdown of how prices will change region by region. Billpayers in North Wales and Merseyside will be hit with the biggest increases.

The annual cost for direct debit households in this area will rise 0.5% to £2,579, then 1.3% to £2,655 for prepayment, and 1.9% to £2,838 for pay on receipt on bill.

Those on an Economy 7 tariff, where you pay two different rates for your electricity depending on the time of day, will be hit by the biggest changes.

MoneySavingExpert says it has heard from customers who have already been told their bills are changing by 11% on average.

The next big change to energy bills will come in April 2023 when the Energy Price Guarantee will rise to £3,000 a year for the typical household.

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