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Energy prices rise nearly 4% ahead of potentially bigger January jump
Ofgem’s price cap applies to about 20 million households across England, Scotland and Wales, and a 16.0% January increase has been flagged as possible.
Energy prices have risen by nearly 4%, with forecasts pointing to a larger increase in January, according to BBC Business. The outlook is tied to high wholesale costs paid by suppliers, linked to the conflict in the Middle East.
In the UK, the energy regulator Ofgem’s price cap affects about 20 million households in England, Scotland and Wales, setting a maximum unit price for gas and electricity. Forecasters have suggested a 16.0% increase is possible in January.
BBC Business also notes that the government is set to introduce a VAT cut on electricity bills on Thursday, but charities are calling for more support beyond that change. The article says households should reset for winter by reading their meters and taking steps to keep bills under control.
Ofgem is advising consumers to consider fixing their unit rate so the per unit price does not change every three months, though the total bill will still vary with energy use. The piece adds that it can be difficult to judge whether a fixed deal is a good option when prices are moving quickly.