Households paying by direct debit and using a typical amount of energy will see annual costs rise by £1,738 - an increase of £21 per year.
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00:00Energy bills for the average household are set to increase again in January, with prices
00:05projected to stay relatively high as the new year begins.
00:09Households paying by direct debit and using a typical amount of energy will see annual
00:13costs rise to £1,738, an increase of £21 per year.
00:20Current bills remain over 50% higher than pre-pandemic levels.
00:24This marks three consecutive years of elevated energy costs, which charities warn have pushed
00:29many to the brink, forcing some to go without heating during the coldest months.
00:34The quarterly price cap set by energy regulator Ofgem limits the cost of each energy unit,
00:39affecting 26 million homes in England, Wales and Scotland.
00:44While the cap results in an average monthly bill increase of £1.75, it represents a 10%
00:50decrease compared to the same period last year.
00:53Tim Jarvis of Ofgem acknowledged the strain on households, stating,
00:57We understand that the cost of energy remains a challenge for too many households.
01:01However, with more tariffs coming into the market, there are ways for customers to bring
01:05their bill down, so please shop around and look at all the options.
01:09Despite two milder winters since the energy crisis began,
01:13households now face the prospect of a colder season, which could further strain their budgets.
01:18Long-term forecasts from consultancy Cornwall Insights suggest high energy prices
01:23are likely to become the new normal.
01:25Dame Claire Moriarty, CEO of Citizens Advice, expressed concern for vulnerable groups,
01:31saying, For bills to remain at this high level,
01:33and with an expectation that they'll remain at that level for the foreseeable future,
01:37we're just expecting to see people continuing to be really squeezed,
01:41particularly families with children, particularly disabled people.