Bills rise as temperatures drop

MANY households' energy bills rose fractionally yesterday, just as a swathe of cold health alerts have been issued for large areas of the UK.

- JOSIE CLARKE

The 0.2% increase to Ofgem's energy price cap will equate to a rise of about 28p a month for the average household in England, Wales and Scotland remaining on a standard variable tariff.

This amounts to an average overall bill of £1,758 a year, up from the current £1,755. However experts at Cornwall Insight have forecast energy bills to fall by £138, or 8%, to £1,620 a year when the cap is next updated in April thanks to government measures announced in the recent budget.

Chancellor Rachel Reeves said £150 would be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme introduced by the Tories in government.

Wholesale energy prices have also dropped in recent weeks, which is set to keep a lid on price hikes from April, Cornwall Insight said.

Regulator Ofgem said yesterday's increase to the cap, which was announced in November, was being driven by the funding of nuclear power projects and discounts to some households' winter bills.

This included funding the Government's Sizewell C nuclear power plant in Suffolk with an average of £1 added to each household's energy bills per month for the duration of the £38 billion construction.

An increase to standing charges the amount consumers pay per day to have energy supplied to their homes - was also largely due to costs linked to the Government's Warm Home Discount scheme.

Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the £150 discount this winter.