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UK energy watchdog Ofgem raises price cap by 0.2% from January
Ofgem's price cap rise adds about 28p monthly to dual-fuel household bills due to government policy and network costs despite a 4% drop in wholesale prices.
- On January 1, Ofgem raised the energy price cap by 0.2% for the January–March period, affecting more than 30 million households and increasing typical bills from £1,755 to £1,758.
- Wholesale energy costs remain the largest element, with network operation and maintenance costs, VAT and supplier operating costs, and government policy levies including funding for Sizewell C also factored in.
- Average households will see about a 28p monthly rise, Ofgem says the cap limits unit rates and standing charges, and a typical household uses 2,700 kWh electricity and 11,500 kWh gas annually.
- Charities report unpaid energy debts have reached a record £4.4bn, prompting plans from Ofgem to write off up to £500m, while McCluskey said `We know that energy bills remain too high` and announced £150 support.
- Despite forecasts of a 1% fall, forecasters were surprised by the rise as Cornwall Insight predicted a drop, and standing charges rose, highlighting structural problems in energy billing.
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Total News Sources67
Leaning Left7Leaning Right5Center37Last UpdatedBias Distribution76% Center
Bias Distribution
- 76% of the sources are Center
76% Center
14%
C 76%
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