Check how much more you will pay for energy bills as Ofgem announces new price cap

Energy regulator Ofgem has confirmed energy bills are to rise again from January 1 as it announced a 1.2 per cent increase to its price cap.

The regulator said the increase would see the typical bill for a household in England, Scotland and Wales increasing from £1,717 to £1,738-a-year, or by around £1.75-a-month. It follows the price rising by 10 per cent in October.

Ofgem said the cap increase comes as around 1.5million households switched tariff over the past three months. The regulator urged customers to take advantage of the rising choice in the market and look for the best deal to help keep their household energy bills down.

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Despite the increase though, bills are expected to be around 10 per cent cheaper than they were at the same time last year. But it comes as millions of pensioners are facing a winter with less support, after the new government decided to scrap winter fuel payments for those who do not receive pension credit or other benefits.

The impact of these changes will vary from household to household though, depending on how much fuel you use. Standing charges are falling by 1p for gas and 2p for electricity.

The unit price for gas, however, is rising by 10p per kilowatt hour (KwH), which is a rise of 1.6 per cent. The unit price for electricity is rising by 36p per KwH, a rise of 1.5 per cent.

You can estimate how much your bill will increase from January using our energy bills calculator below.

Tim Jarvis, director general of markets at Ofgem, said: "While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too