Newtown residents are set to be hit with an increase in their energy bills from January as Ofgem, the energy regulator, announced a rise in the price cap.

The average household energy bill is predicted to rise by £94 per year, driven by rising costs in the international wholesale energy market.

  Other Trending Stories

• Flat plans for iconic town building
• Lots of activities to do at the textile museum
• Awards galore at local football club
• Changes to health provision proposed

The current price cap stands at £1,834 for a typical dual fuel household, but this will increase to £1,928 from January 1.

The rise in prices is mostly attributed to market instability and global events, particularly the conflict in Ukraine.

Ofgem chief executive Jonathan Brearley expressed understanding for the concerns surrounding the increase, stating, "This is a difficult time for many people, and any increase in bills will be worrying."

Brearley went on to explain that the increase is necessary to reflect the rising cost of gas and electricity in the wholesale market. However, Ofgem has made it clear that suppliers should provide support to customers who may struggle with the increased bills.

Brearley also highlighted the return of choice to the energy market, suggesting that customers consider shopping around for more competitive tariffs that offer either the security of a fixed rate or a more flexible deal below the price cap.

The energy price cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity. It is not an absolute cap on bills and therefore those who use more energy will face higher bills.