The energy price hike will hit millions at the coldest time of year

The energy price cap will go up in January, pushing up costs in the middle of winter, writes James Moore. It is time for Rishi Sunak to drop his war on net-zero and invest in the green technology to bring bills down

OfGem has warned that energy bills will rise during the coldest months of the year (PA) (PA Wire)

Just a day after the Chancellor’s Autumn statement, Ofgem delivered a gut punch that will strip gains from the winners and leave some of the losers in a desperate state.

The energy regulator’s price cap will increase by 5 per cent from January 1 to March 31 2024 when compared to the previous three month quarter. It said that an average household paying by direct debit for dual fuel (gas and electricity) would see bills rising by £94 from to £1,928.

However, it is worse than it looks because that figure is an average across the course of a year. The new higher charges will hit at the coldest time of year when people’s energy use is at its higest. Ofgem CEO Jonathan Brearly blamed higher wholesale energy costs for the price rise but said he had “made it clear to suppliers that we expect them to identify and offer help to those who are struggling with bills”.