Energy price regulator Ofgem have announced that the energy price cap will increase by 0.2% between January 1 and March 31 next year.
This is relevant for households across England, Wales and Scotland.
The increase in the price cap is unexpected, with forecaster Cornwall Insights having predicted that there was going to be a 1% drop.
How much more will households be paying?
Households can expect to pay around 28p more every month, with the average yearly bill for a dual-fuel household going up to £1,758 a year, up from £1,755 a year.
The price cap is charged per unit of gas and electricity, so those that use more energy will pay more.
Ofgem’s cap is based on a home using 11,500 kWh of gas and 2,700 kWh of electricity per year, paid on a dual-fuel tariff via direct debit.
What have the government said about the increase?
Martin McCluskey, Minister for Energy Consumers, issued a statement addressing the increase.
“We know that energy bills remain too high. That is why we are taking immediate action, with millions more families receiving £150 off their bills through the expanded Warm Home Discount scheme this winter.
“We are taking the long-term action needed to bring down bills for good with the government’s clean power mission.
“We are also delivering our new golden age of nuclear, with cheaper, clean electricity to power millions of homes, kick-start economic growth and create thousands of jobs.”