{"id":111311,"title":"Energy Costs for Households to Increase Following Ofgem’s Decision to Raise Price Cap","publisher":"Share Talk","author":"sharetalk","published":"2023-11-23T08:23:53+00:00","modified":"2023-11-23T08:23:53+00:00","canonical_url":"https://www.share-talk.com/energy-costs-for-households-to-increase-following-ofgems-decision-to-raise-price-cap/","markdown_url":"https://www.share-talk.com/energy-costs-for-households-to-increase-following-ofgems-decision-to-raise-price-cap.md","json_url":"https://www.share-talk.com/energy-costs-for-households-to-increase-following-ofgems-decision-to-raise-price-cap.json","category":"B2B","categories":["B2B","Blogs","Energy","Technology, Media & Telecoms","TheBizLounge"],"tags":["annual","Bank of England","Bankrupt","bills","BRITISH","Business Secretary","Chancellor","Christine Farnish","Citigroup","Companies","crisis","electricity","ENERGY","FINANCE","finances","gas","GDP","generators","giants","Good Energy","households","increases","Inflation","Jeremy Hunt","Kwasi Kwarteng","Minister","Nadhim Zhawi","National Grid","NATO","OBR","Octopus","Ofgem","Outfox","payouts","Profits","public","rate","Share Talk","SO Energy","suppliers","Tax","taxes","TruEnergy.","UK","Unemployment","Windfall"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Energy-companies-accused-of-using-smart-meters-for-disconnecting-customers-through-the-back-door-750x406-1.jpg?fit=750%2C406&quality=89&ssl=1","format":"news","language":"en-GB","content":"Ofgem, the UK’s energy regulator, has declared an increase in the energy price cap, leading to an average annual rise of £94 in household energy bills. The cap will be raised from £1,834 to £1,928, effective from January 1.\n\nThis decision follows the Chancellor’s recent announcement of National Insurance cuts, which are projected to save workers an average of £450 annually.\n\nHowever, in his Autumn Statement, Jeremy Hunt did not propose additional measures to alleviate the burden of rising energy bills, unlike last winter.\n\nCornwall Insight, an energy forecasting firm, anticipates a decrease in the typical bill to £1,853 from April but does not expect it to fall below the current level until July of the following year.\n\nUnder the New Cap, the Average Monthly Household Energy Bill to Increase by £7.83 Over a Year\n\nStarting January 1, the revised energy cap will result in a monthly increase of £7.83 in the average household energy bill over a year.\n\nSpecifically, for standard direct debit customers, the electricity unit rate will be set at 29p per kWh and gas at 7p per kWh. Additionally, the daily standing charges will be 53p for electricity and 30p for gas. The firm noted that the recent drop in gas prices, aided by milder weather, could lead to reduced energy bills next year if the trend continues.\n\nCitizens Advice Warns of ‘Heat or Eat’ Dilemma for Households Amid Energy Price Cap Increases.\n\nGillian Cooper, the director of energy at Citizens Advice, expressed concern that the recent Ofgem decision to raise the energy price cap will exacerbate financial struggles for numerous households. She highlighted the surge in people grappling with energy debt and the growing number unable to afford prepayment meter top-ups.\n\nCooper criticized the government’s recent omission of additional support for households in dire need this winter. This inaction, she said, leaves many facing the grim choice between heating their homes and having enough to eat.\n\nShe urged the government to fulfil its promise to consider targeted financial assistance for energy bills starting April 2024, emphasizing the urgency of the situation."}