Simple chart reveals exact amount your energy direct debit will rise by in January – some will pay more than others
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MILLIONS of households will see their energy rise in the New Year. Ofgem's price cap will increase from £1,717 a year to £1,738, affecting 26million households on their supplier's standard variable tariff. However, it's important to note that the price cap is not a limit on the overall amount people will pay for their energy.
Instead, it caps the amount that they pay per kilowatt hour, or unit, for gas and electricity. The watchdog's calculations assume the average household burns through 11,500kWh of gas and 2,700kWh of electricity each year. Use more, and you'll be shelling out more than £1,738 come January. Use less, and your wallet might breathe a sigh of relief.
We've crunched the numbers to uncover just how much extra you'll need to fork out when those dreaded bills arrive in January. We've worked out how much a typical small, medium and large household currently pays via direct debit each month and how much they'll pay when the price cap changes in the New Year.
But don't expect to be charged these exact figures. These are based on national averages, and it's important to remember that the price cap varies by region. Your monthly direct debit may also vary depending on if you're in debt or have significant credit with your energy supplier.
A small household made up of one to two people uses around 7,500kWh of gas and 1,800kWh of electricity every year. These households currently pay roughly £104 a month on their energy bills. However, the same household will see their bills rise to £105 a month from January 1 - or from £1,247 a year to £1,260 a year.
