Gas and electric bills are expected to rise in the New Year as the new price cap is put in place.

The Ofgem price cap will rise from £1834 to £1928 a jump of £94 for the average bill.

Raising the cap means energy providers can charge more for gas and electricity from January 1, and it will be in place for three months.

Ofgem attributed the need for the cap to rise to the increased cost of wholesale gas as a result of world events like the ongoing war in Ukraine and the current situation in the Middle East.

Advice charities are urging people to seek help if they are struggling to pay their bills and to check they are receiving all benefits they may be entitled to.

Many people will have seen their finances stretched over Christmas and will be concerned about bills going up in the New Year.

When the increase was announced, Jonathan Brearley chief executive of Ofgem, said: “This is a difficult time for many people and any increase in bills will be worrying.

“But this rise, around the levels we saw in August, is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay. 

“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills.” 

Hazel Knowles, energy lead for Advice Direct Scotland, said: “The rise in the energy price cap at the coldest time of the year will alarm many people who are already grappling with household bills and have had to deal with the cost of Christmas.
“Costs are already hundreds of pounds higher than they were pre-Covid, pushing people into debt.

“Some have been making difficult decisions about spending on even essential items.
“It has already been an extremely tough winter and the last thing people need is to be paying even more for their energy.
“We urge people across Scotland not to struggle alone – our expert advisers can provide free advice on the support available and ensure that households are claiming all the benefits they are entitled to.”

Advice Direct Scotland manages the website where people can check a benefits calculator, and has advisers available on freephone 0808 196 8660.

The next price cap from April 1 to June 30 will be announced by February 23 next year.