UK energy price cap to rise by 0.2% in January

(Sharecast News) - Long-suffering UK households will see their energy bills rise by 0.2% from January 1 after industry regulator Ofgem increased its price cap despite a 4% fall in wholesale costs over the last three months. This means energy bills will rise by about 28p a month for the average dual-fuel household in England, Scotland and Wales for an average overall bill of £1,758 per year for those on a default tariff, up from the current £1,755.

Ofgem added that the rise was also due to £1 a month being added to bills to help pay for the new Sizewell C nuclear plant which is expected to cost around £38bn.

"The price cap change is driven by government policy costs and operating costs," it said on Friday.

Reporting by Frank Prenesti for Sharecast.com