Overview
- The 0.2% adjustment adds about 28p a month for a direct-debit household on a standard variable tariff, with the cap limiting unit rates and standing charges rather than total use.
- Caps for other payment types also increase, to £1,711 for prepayment users and £1,894 for pay-on-receipt customers.
- Ofgem points to funding for Sizewell C and the expanded Warm Home Discount as key drivers, including about £1 a month for the nuclear project during construction.
- Government measures announced in November are set to cut average bills by £150 from April as ECO ends and some levies move to taxation, and Cornwall Insight forecasts a cap near £1,620.
- The rise coincides with widespread cold weather alerts in England and Scotland, while Which? urges households to consider short fixed deals priced below the cap.