Average household energy bill to rise by £21 in January

The average household energy bill is set to rise again in January, with prices predicted to stay high into the new year.

Those paying by Direct Debit, and using a typical amount of gas and electricity, will pay £1,738 per year – £21 more per year.

Prices also rose in October, with charities warning that many people will struggle to pay their bills or choose to turn their heating off at the coldest time of the year.

The cap is 1.2% higher than it currently is and means household bills will rise by £1.75 per month.

However, it is 10% down on 2023, but Ofgem still says it will have financial implications on householders.

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.

“Our reliance on volatile international markets – which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate.

“So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.

“In the short term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”