Millions of households in Great Britain face higher energy bills as price cap rises
Share:
Average annual bill in England, Scotland and Wales increases by 1.2% to £1,738 from New Year’s Day. Nine million homes will face higher energy bills from Wednesday as Britain braces for freezing temperatures and snow warnings for the new year period.
The average energy bill for households across England, Scotland and Wales will rise by 1.2% from New Year’s Day to £1,738 a year for a typical household after the energy regulator raised its cap on gas and electricity charges. The rising price cap is expected to pile pressure on household finances during the coldest months of the year when millions of homes have already racked up record levels of debt to their energy suppliers.
Britain enters the new year with a series of weather warnings across the country for heavy rain, wind and snow. By the weekend, temperatures across many areas of the country are expected to fall below zero, which fuel poverty campaigners fear will take a toll on the more than 8 million customers living in cold, damp homes.
Bills are expected to creep higher again in April to an average of £1,785 a year, according to forecasts by consultants at Cornwall Insight – almost £600 a year more than the price cap before Russia’s invasion of Ukraine in February 2022. Households could face even higher bills if they use more than the typical amount of energy. This is because the cap, which is recalculated every three months, limits the rate energy suppliers can charge customers for each unit of gas and electricity – not the total bill. About 9m homes on variable tariffs linked to the price cap will see an immediate impact on their bills, while it will be delayed for others on fixed tariffs.
