Household energy bills to edge up by 0.2% next year

HOUSEHOLD energy bills will rise slightly from January after increases to Government policy costs helped offset falling gas prices, Ofgem said.

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Funding nuclear power projects and discounts to some households’ winter bills were driving the price cap change, the regulator said.

The 0.2% increase from the current cap will take effect from January 1 for households in England, Wales and Scotland on standard variable tariffs.

It means energy bills will rise by about 28p a month for the average household paying by direct debit for gas and electricity. This amounts to an overall bill of £1,758 a year, up from the current £1,755.

Higher electricity rates per unit have driven the latest change, while gas rates will fall slightly - meaning that households who use electric heating could see the biggest impact.