The regulator has raised its price cap from January 1 in response to increasing wholesale energy costs faced by suppliers.

The average annual energy bill in England, Scotland and Wales will rise to £1,738 per year from January, putting more pressure on household finances – at a time when cold weather drives up demand for energy.

Someone paying by direct debit and using a typical amount of energy will pay £21 more a year from January.

Energy regulator Ofgem has said a change to the energy price cap means bills for an average household will rise next year

(Bloomberg) — The UK energy price cap will rise in January, a signal that the inflationary impact the measure is having is set to continue.

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

Previously a fall had been predicted - but in a new blow experts reckon energy prices will rise again after winter fuel payment was axed

Many households will now be thinking about whether to move from a standard to a fixed tariff

The regulator changes the price cap every three months, with the latest one set to take effect on January 1 and continue through to March 31.

EDF’s price cap forecasting service predicted earlier this week that today’s announcement from Ofgem would see the cap go up by £19 from 1 January 2025.

Make sure you have checked what your own and other energy companies are offering in the way of fixed tariff deals