Wholesale energy prices have dropped in recent weeks, which is set to keep a lid on energy price hikes from April (PA) <\/p>\n
UK energy bills are set to fall by \u00a3138 by April \u2013 despite households expecting a rise on Thursday during the next bout of cold weather.<\/a><\/p>\n Experts at Cornwall Insight said they expect energy bills to fall by \u00a3138, or 8 per cent, to \u00a31,620 a year when the cap is next updated in April due to government measures announced in the recent Budget.<\/p>\n Chancellor Rachel Reeves<\/a> said \u00a3150 would be cut from the average household bill from April by scrapping the Energy Company Obligation scheme introduced by the Tories<\/a> in government.<\/p>\n Wholesale energy prices have also dropped in recent weeks, which is set to keep a lid on energy price hikes from April, according to Cornwall Insight.<\/p>\n But, before then, many households\u2019 energy bills are set to rise on New Year\u2019s Day, just as a swathe of cold health alerts have been issued for large areas of the UK.<\/p>\n The 0.2 per cent increase to Ofgem<\/a>\u2019s energy price cap will equate to a rise of about 28p a month for the average household in England<\/a>, Wales<\/a> and Scotland<\/a> remaining on a standard variable tariff.<\/p>\n This amounts to an average overall bill of \u00a31,758 a year, up from the current \u00a31,755.<\/p>\n Regulator Ofgem<\/a> said Thursday\u2019s increase in the cap, which was announced in November, was being driven by the funding of nuclear power projects and discounts to some households\u2019 winter bills.<\/p>\n This included funding the government\u2019s Sizewell C<\/a> nuclear power plant in Suffolk<\/a> \u2013 with an average of \u00a31 added to each household\u2019s energy bills per month for the duration of the \u00a338bn construction.<\/p>\n An increase to standing charges \u2013 the amount consumers pay per day to have energy supplied to their homes \u2013 was also largely due to costs linked to the government\u2019s warm home discount<\/a> scheme.<\/p>\n Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the \u00a3150 discount<\/a> this winter.<\/p>\n However, the regulator said the new price cap was \u00a337 lower than a year ago when adjusted for inflation.<\/p>\n Ofgem<\/a>\u2019s price cap sets a maximum rate per unit and standing charge that customers can be billed when they are not on a fixed tariff.<\/p>\n Story Continues <\/p>\n It does not limit total bills because households still pay for the amount of energy they consume.<\/p>\n The price cap increase comes just as a yellow warning for snow and ice has been issued for parts of Scotland<\/a> north of the central belt from 6am on New Year\u2019s Day until midnight on 2 January.<\/p>\n Amber cold health alerts have been issued for the North East<\/a> and northwest England<\/a>, which are due to remain in place until noon on 5 January, with temperatures expected to fall to 3-5C.<\/p>\n Yellow cold health alerts have been issued by the UK Health Security Agency for London<\/a> and the east, southeast<\/a> and southwest of England<\/a>, as well as the East and West Midlands<\/a> and Yorkshire<\/a> and the Humber.<\/p>\n Simon Francis<\/a>, co-ordinator of the End Fuel Poverty Coalition, said: \u201cIt really is a case of every little doesn\u2019t help as households spend a fifth winter in the energy bills crisis. Tiny movements in the price cap still hit hard for families choosing between heating and eating.<\/p>\n \u201cPeople<\/a> continue to live in cold, damp homes, where the risks go beyond discomfort and into real danger, including exposure to carbon monoxide. Younger adults, private renters and households with children are among those most at risk as people<\/a> cut back on heating, delay repairs and try to block draughts just to stay warm.<\/p>\n