Millions of households will see their energy bills increase in 2023 as changes are made to the amount that energy suppliers charge per unit of gas and electricity.
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Money-saving expert Martin Lewis said the change for many will be trivialbut warned that for some, it could be quite significant, as per the Daily Mail:
The energy price guarantee was meant to guarantee prices until the end of March (when we know the cost people pay will increase by 20 per cent). So it will come as a surprise to many to see prices change in January.
£100 a year
Whilst the government has maintained that the average annual bill will be around £2500, the maximum rate per unit has changed. These changes will affect all 12 energy regions around the UK, meaning they can increase their prices to the higher level.
For the majority this will represent a negligible increase of just a few pounds a year but some households could see tariffs go up by up to 8.9 per cent, which could be more than £100 a year.
The news comes as many people still are struggling with the cost of living crisis and so customers are being urged not to panic if they receive a letter detailing the price increase as it is likely to be a manageable amount.
Energy price cap
The energy price cap is calculated by Ofgem and protected by the Government and ministers announced the energy price guarantee back in October as well to protect households from escalating energy bills.
The guarantee currently has a maximum of £2,500 but this will rise to £3,000 in April. However now that the price cap is higher than the Government's price guarantee, Whitehall will pay the difference in order to protect households.
Grant Shapps, Britain's Energy Secretary, has stated that the Government will keep what support it offers 'under review at all times' and commented, as per The Daily Mail:
We acknowledge the way the energy price guarantee and the energy price cap interact isn't perfect, but it's right we move quickly to support people this winter.
The energy price guarantee will keep bills at around £2,500 for a typical household this winter and we're grateful to you for continuing to make that clear.
Sources used:
- Daily Mail 'Millions of households face 'surprise' rise in energy bills from January 1: How much extra will YOU pay a month for gas and electricity – and why are payments increasing?'
