MILLIONS of just-about-managing households face yet another increase in how much they pay for their energy bills after the regulator told suppliers they could ramp up prices.
Here is all you need to know about the latest blow to many British families finances.
Why are energy bill prices rising in 2018?
Energy regulator Ofgem blamed rising wholesale gas and electricity prices and the cost of government green energy schemes for the 5.5 per cent rise in the price cap it sets.
The Government is preparing to extend the price cap to 11 million more households.
But Ofgem’s decision calls into question Theresa May’s pledge that the policy would prevent “unexpected and significant” rises in bills.
Suppliers may use Ofgem’s admission of rising costs to attempt to justify price increases.
When will energy prices go up?
Vulnerable households face paying £57 more per year typically for their energy from April, warns MoneySavingExpert.com.
This represents a rise of 5.6 per cent.
Both EDF and British Gas, which is owned by utility firm Centrica, blamed rising whole prices for the increase.
The increases will come into effect at the end of May.
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How much will they increase after the Ofgem cap change?
In February, regulator Ofgem announced it was increasing the prepayment price cap – introduced in April 2017 – from the current average of £1,031 per year to £1,089 per year based on typical use.
But according to new analysis from MoneySavingExpert.com , five of the big six energy giants have confirmed they will be increasing their prices to just £1 or £2 shy of the new cap, and SSE has yet to confirm any changes.
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