Household energy bills to rise by £21 a year from January in further blow for Brits this winter

By Emma Soteriou

Household energy bills are set to soar again as the price cap is hiked to £1,738 a year.

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The 1.2 per cent increase will come in from January 1 for a typical household in England, Scotland and Wales, Ofgem said.

It means bills will rise by £21 for an average household per year or around £1.75-a-month.

It comes after a 10% increase came in at the start of October, with the average household going from paying £1,568 a year to £1,717.

Customers have been urged to take advantage of the rising choice in the market and find the best deals to keep their bills down.

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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."

Energy Secretary Ed Miliband said: "The rise in the energy price cap will cause concern for families struggling with the cost of living. That is why the Government will do all we can to help people.

"We are taking action to insulate homes, providing the Warm Home Discount to three million families, driving increased take up of pension credit, and working with suppliers to ensure there is help available for the most vulnerable customers.

"As long as Britain remains exposed to the rollercoaster of global fossil fuel markets, we will be vulnerable to energy price rises over which we have no control.

"The Government's clean energy mission is the only way to take back control of our energy, with cheaper and more secure power, out of the grip of dictators like Putin.

"That is why we are acting at speed on this mission to give families the energy security they deserve. Every wind turbine and solar panel we install, every home we insulate will help to protect consumers and bring down bills once and for all."