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Will energy bills change with Ofgem price cap set to rise on January 1
29.12.2022 - 21:29 / dailyrecord.co.uk
Some consumers may have received concerning emails regarding energy price rises going into the New Year.
The regulator Ofgem has confirmed its price cap will increase by around 20 percent come January 1 - up from £3,549 a year for someone with typical use to £4,279. This could lead to confusion as UK energy bills are still discounted by the Government's Energy Price Guarantee until April 2023.
The guarantee covers the amount you pay per kilowatt, and is currently set at a rate which will see the average household pay around £2,500 a year - rising to £3,000 in April.
Changes are likely to be minimal for consumers, meaning pennies more, rather than pounds, reports the Mirror. This is because the guarantee is still in place, although there are regional differences in the Ofgem price cap rates, and the discount applied through the Energy Price Guarantee is a flat rate.
The new amount that you will pay from January 1 will also depend on your method of paying as prepay and pay on receipt will see slightly larger rises.
MoneySavingExpert has a breakdown of how prices will change, with North Scotland direct debit customers actually paying 0.3 percent less, according to the publication. Meanwhile prepay customers could see a 0.4 percent rise and pay on receipt customers may see rates increase by 1.1 percent.
As for Southern Scotland, direct debit customers could see a rise of 0.1 percent to £2,586 on average. Prepay rates could jump up by 1 percent and pay on receipt rates could increase by 1.6 percent.
While this won't bring in a huge change since the UK's rates are still discounted by the Energy Price Guarantee, It's also important to remember the £2,500 figure is not a cap. It is just used to illustrate how much the typical
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