Household energy bills will rise slightly from January after increases to Government policy costs helped offset falling gas prices, Ofgem said.

Funding nuclear power projects and discounts to some households’ winter bills were driving the price cap change, the regulator said.

The 0.2% increase from the current cap will take effect from January 1 for households in England , Wales and Scotland on standard variable tariffs.

It means energy bills will rise by about 28p a month for the average household paying by direct debit for gas and electricity.

This amounts to an overall bill of £1,758 a year, up from the current £1,755.

Higher electricity rates per unit have driven the latest change, while gas rates will fall slightly – meaning that households who use electric heating could se

See Full Page