As of January 1, 2024, households in Great Britain are grappling with a 5% increase in energy bills, with the regulator, Ofgem, adjusting the price cap in response to soaring global gas market prices.
The average annual household energy bill has risen by £94, reaching £1,928 during the coldest months of the year.
This surge is attributed to market instability influenced by events such as Russia’s invasion of Ukraine and conflicts in the Middle East.
While Ofgem anticipates a drop in prices come April, concerns over affordability persist, leading organisations to call for additional targeted support for those struggling to pay their bills.
1. Ofgem’s price cap increase results in a £94 rise in the average annual household energy bill in Great Britain.
2. The surge, taking effect on January 1, 2024, amounts to a 5% increase in energy bills in great britain during the coldest months of the year.
3. The price cap is set at £1,928 a year for a typical household using gas and electricity, up from £1,834 in the final quarter of 2023.
4. Ofgem Chief Executive Jonathan Brearley acknowledges the challenging times and expresses understanding of the worries associated with any increase in bills.
5. Citizens Advice reports a record number of people struggling to pay energy bills leading up to Christmas, prompting calls for additional government support.
6. Despite the current surge, forecasts suggest a potential 14% reduction in energy bills in April, providing a glimmer of hope for households. Cornwall Insight predicts the average annual bill to decrease to £1,660.
