Gas and electricity bills will become even more expensive in January, as the energy regulator Ofgem ups the price cap.
A typical yearly bill will be £1,738 from January, an increase of 1.2%.
For billpayers, it means an extra £21 a year or around £1.75 a month.
It’s another blow as falls in prices had originally been forecast for the new year.
It’s also bad news for the prospect of inflation falling again. Costlier energy bills were a key reason inflation rose sharply to 2.3% last month.
Instead of falling steeply, annual bills are expected only to ease by £5 from April, according to analysis from the respected forecasters at Cornwall Insight.
Since Russia’s invasion of Ukraine early in 2022 energy bills spiked and remained high. But even after the rise from next year energy will still be 10% cheaper than the same time in 2024 and 57.2% less than 2023.
The energy price cap sets a limit on how much companies can charge per unit of electricity. Every three months Ofgem revises the cap based on wholesale costs.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.