What the January energy price cap rise means for you

We break down how the small January rise will affect typical households in England and Wales.

Transcript

00:00From the start of January, households on variable tariffs in England and Wales will see a price

00:06cap increase of around 0.2%, which means the typical user will pay slightly more even though

00:12most wholesale costs have steadied. Ofgem says electricity unit rates are rising whilst gas is

00:18dipping a little, so the impact will fall hardest on people who use more electricity for heating,

00:23cooking or charging at home. Regulators add that government policy costs and operating charges

00:29are also contributing to the change, including support for infrastructure projects such as the

00:35Sizewell C nuclear development, which adds about £1 a month to an average bill. Ofgem's Tim Jarvis

00:42says wholesale prices still make up the largest part of what we pay, leaving families exposed to

00:48volatility. But he also stresses that people can shop around for fixed deals. Bills remain lower than

00:55the same period last year, but still high by historic standards.