The price of energy for a typical household that uses gas and electricity and pays by Direct Debit will go up by £94 after Ofgem announced it will increase the price cap by 5% on the previous quarter from 1 January 2024.

For an average household paying by direct debit for dual fuel, this equates to £1,928, a rise of £94 over the course of a year – around £7.83 a month.

Jonathan Brearley, CEO of Ofgem, said: “This is a difficult time for many people, and any increase in bills will be worrying. But this rise – around the levels we saw in August – is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay.

“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills.”

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