Ofgem is to increase their price cap from 1 January meaning household energy bill are set to rise by 0.2%, the regulator said that gas and electricity will increase by around 28p per month for the average family.
With adjusted inflation Ofgem has said the cap is £37 lower than between January and March in 2025.
The overall bill will be £1,758 a year for the average household paying by direct debit card for gas and electricity, this is up from the current £1,755.
This winter a further 2.7 million low-income households and 900,000 families with children can claim the £150 discount.
Tim Jarvis, director general of markets for Ofgem, said: “While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets.
“The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy.
“While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices.
“That’s why we’re working with government and industry to boost clean energy and reduce our reliance on international sources we can’t control.”
Martin McCluskey, the Government’s minister for energy consumers, said: “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.”
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