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| Typical energy bill to rise by £21 a year in January | Typical energy bill to rise by £21 a year in January |
| (33 minutes later) | |
| Energy bills for a typical household will rise again in January, with prices expected to remain relatively high into the next year. | |
| It means someone paying by direct debit and using a typical amount of gas and electricity will pay £1,738 a year, or £21 more a year, which remains high compared with pre-Covid norms. | |
| Prices rose in October and with a similar level now confirmed for the rest of the winter, charities are warning many will struggle to cope with bills or choose to go without heating at the coldest time of year. | Prices rose in October and with a similar level now confirmed for the rest of the winter, charities are warning many will struggle to cope with bills or choose to go without heating at the coldest time of year. |
| The quarterly cap by regulator Ofgem sets a limit on the cost of each unit of energy, and affects 26 million households in England, Wales and Scotland. | The quarterly cap by regulator Ofgem sets a limit on the cost of each unit of energy, and affects 26 million households in England, Wales and Scotland. |
| The cap is 1.2% higher than current levels, and means a household bill will typically rise by £1.75 a month. | The cap is 1.2% higher than current levels, and means a household bill will typically rise by £1.75 a month. |
| It is also 10% down on the same period last year, but Ofgem said many billpayers would still be stretched. | It is also 10% down on the same period last year, but Ofgem said many billpayers would still be stretched. |
| "We understand that the cost of energy remains a challenge for too many households," said Tim Jarvis, from the regulator. | "We understand that the cost of energy remains a challenge for too many households," said Tim Jarvis, from the regulator. |
| "However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options." | "However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options." |
| Debt building up | Debt building up |
| While the cost of each unit of gas and electricity is capped, the total bill is not. So, a long, cold winter could see higher energy use and high bills. | While the cost of each unit of gas and electricity is capped, the total bill is not. So, a long, cold winter could see higher energy use and high bills. |
| Energy companies say they have put extra support in place to help customers cope with the situation, such as emergency credit, hardship funds or striking off some debts or standing charges. | Energy companies say they have put extra support in place to help customers cope with the situation, such as emergency credit, hardship funds or striking off some debts or standing charges. |
| However a period of high prices - which analysts say is likely to continue - means households have collectively built up debt of £3.7bn to suppliers. | However a period of high prices - which analysts say is likely to continue - means households have collectively built up debt of £3.7bn to suppliers. |
| The average household in arrears owes more than £1,500 for electricity and £1,300 for gas. | The average household in arrears owes more than £1,500 for electricity and £1,300 for gas. |
| The charity National Energy Action said many people were already "rationing their energy use" or building up debt to try to keep warm. | The charity National Energy Action said many people were already "rationing their energy use" or building up debt to try to keep warm. |
| "Targeted government support is essential to save millions from the misery and danger of a cold home," said Adam Scorer, its chief executive. | "Targeted government support is essential to save millions from the misery and danger of a cold home," said Adam Scorer, its chief executive. |
| Angela says she is in arrears on her energy bill | Angela says she is in arrears on her energy bill |
| Angela, from Liverpool, is one of those who has fallen behind on bills. | Angela, from Liverpool, is one of those who has fallen behind on bills. |
| As a carer for her mum, she told the BBC she was having to make tough choices. | As a carer for her mum, she told the BBC she was having to make tough choices. |
| "I’m over £1,000 in arrears with [my energy supplier] so I don’t put the gas and electric on," she said. "We just sit there with our onesies on of a night. I think it’s terrible, it’s a disgrace." | "I’m over £1,000 in arrears with [my energy supplier] so I don’t put the gas and electric on," she said. "We just sit there with our onesies on of a night. I think it’s terrible, it’s a disgrace." |
| Close to where she was speaking is Kitty's Laundrette, a co-operative which provides cheap washing and drying for the community, as well as a free service for those who need it. | Close to where she was speaking is Kitty's Laundrette, a co-operative which provides cheap washing and drying for the community, as well as a free service for those who need it. |
| Anthony Scott is part of the team running it, seeing dozens of customers every day, many of whom are struggling financially. | Anthony Scott is part of the team running it, seeing dozens of customers every day, many of whom are struggling financially. |
| “I come across a lot of anger, I feel a lot of anger. People are being priced out of using energy in their own home," he said. | “I come across a lot of anger, I feel a lot of anger. People are being priced out of using energy in their own home," he said. |
| Winter fuel payment debate | |
| The cap affects those on default, variable tariffs, not those who have fixed a price for a set period. | The cap affects those on default, variable tariffs, not those who have fixed a price for a set period. |
| It is set every three months by Ofgem, although the regulator illustrates the change by showing the impact on the annual bill of a household with typical energy usage. | It is set every three months by Ofgem, although the regulator illustrates the change by showing the impact on the annual bill of a household with typical energy usage. |
| To estimate the effect on an individual's annual costs, billpayers can add 1.2% to their current bill. | To estimate the effect on an individual's annual costs, billpayers can add 1.2% to their current bill. |
| Some households will have less support than last winter because the final cost-of-living payment was made to eight million people on means-tested benefits in February. | |
| For pensioners, the previously universal winter fuel payment, worth up to £300, is now only being paid only to those on low incomes who receive certain benefits. | |
| According to the government's own estimates, an additional 50,000 pensioners will be living in relative poverty next year as a result of cuts to the payment. | |
| However, this fails to take into account any increased uptake of pension credit - which qualifies people for the winter fuel payment. | |
| Energy Secretary Ed Miliband said the UK was "exposed to the rollercoaster of global fossil fuel markets", which was why the government was concentrating on generating power in the UK. | |
| He admitted the latest price rise would "concern" many families. | |
| Some pensioner households affected in Northern Ireland will receive a one-off £100 payment. | |
| The energy market is regulated differently in Northern Ireland, and is not governed by the same price cap. | |
| Get in touch | Get in touch |
| How will you be affected by the cost of energy going up? | How will you be affected by the cost of energy going up? |