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The energy price cap, which is amended every three months, will rise by 20% in January to £4,279 per year for a typical household, up from its current level of £3,549 per year.
This year of course, the Government’s energy price guarantee began on 1 October, with a discount off these rates to all households, bringing bills down to £2,500 per year. Households remain currently safe with this cap, which although is set to rise, will be protected by the Government increasing the level of support to keep bills at £2,500.
From January, the discount is set to be 31.8p per kilowatt hour (kWh) for electricity (from 17p per kWh) and 6.4p per kWh for gas (up from 4.2p per kWh).
However, the changes to the underlying price cap and the amount of the discount mean most people’s bills will change slightly, and then change again in April.
You can enter your postcode HERE to see how your area will be affected.
Your bill, it’s important to note, will alter from supplier to supplier, with some charging less than the maximum amount. Also there’ll be no change in January for customers with a direct debit set up. For those on prepay, however, it’s a rise of £21 per year and an extra £43 per year for those who pay on receipt of bills.