UK Energy Price Cap to Rise 5% in January

Increase Attributed to Global Market Shocks; Bills Unlikely to Fall Below £1,700 for Rest of Decade

UK energy regulator Ofgem has announced a 5% increase in the energy price cap, raising average household bills from £1,834 to £1,928 per year starting January 1, 2024.
The rise in energy costs is attributed to shocks in the wholesale market caused by events abroad, including the war in Gaza, disruptions to the Balticconnector pipeline, and industrial action at gas production facilities in Australia.
Last year, a government-subsidised discount knocked £400 off every home’s energy bills between November 2022 and March 2023, but this help is no longer available, leading to higher prices this winter.
Experts warn that energy bills are unlikely to fall below £1,700 for the rest of the decade.
Consumers are advised to consider switching suppliers or plans, as a range of tariffs are now available offering the security of a fixed rate or a more flexible deal that tracks below the price cap.