Ofgem confirm that energy price cap will rise in January 2024

Ofgem have today (23/11/2023) confirmed that household energy prices will rise this coming January, putting more financial pressure on billpayers at the coldest time of year.

Energy regulator Ofgem said the typical annual household bill would go up from £1,834 to £1,928, a rise of £94 or 5%.

It said the rise in bills would be “worrying” at a difficult time for many people, but was the result of higher wholesale costs faced by suppliers.

Analysts at Cornwall Insight have predicted that prices will fall back in March 2024 when Ofgem release their next quarterly price cap revision.

29 million households are currently on the price cap in England, Wales and Scotland. How this translates into the price a household will pay per unit is 7p per kilowatt hour (kWh) for gas and 29p per kWh for electric.

“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,” said Jonathan Brearley, chief executive of Ofgem.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Amid the cost-of-living crisis, the last thing households need is a rise in energy bills – especially going into the winter months.

“However, as is often the case in the energy market, new challenges have arisen, and our reliance on foreign energy has once again left the UK vulnerable to price increases caused by events around the globe.”

Although the price cap only affects households in the UK, we recommend that businesses keep a close eye on market trends so they can make a well informed decision on their next fixed term contract.

Prices in the business market move daily so it has never been more important to track the wholesale market moves – join our price tracker service now.