Energy bills for households across the country are set to rise.
Ofgem, a regulatory body supervising the operation of the gas and electricity industry, has said that higher wholesale costs will push up default and pre-payment price caps from April.
The cap, introduced on January 1, will increase by £117 to £1,254 a year for the six-month summer period.
For pre-payment meter customers, the limit will jump £106 to £1,242 a year for the same period.
Those on default deals are still better off as Ofgem analysis suggests that without the default tariff cap they could be overcharged by £75-£100 a year. Also stating that households could save more money by switching.
The energy price cap was first introduced by Prime Minister Theresa May in 2017 as part of a pledge to save households on some of the priciest tariffs an average of £100 a year.
The cap, Ofgem said, will continue to ensure that 15 million households pay a fair price for their energy – it said the increase reflect a genuine increase in underlying energy costs rather than supplier profiteering.
“will continue to ensure that 15 million households pay a fair price for their energy”
Dermot Nolan, chief executive of Ofgem, said: “Under the caps, households on default tariffs are protected and will always pay a fair price for their energy, even though the levels will increase from 1 April.
“We can assure these customers that they remain protected from being overcharged for their energy and that these increases are only due to actual rises in energy costs, rather than excess charges from supplier profiteering.
“Alongside the price caps, we are continuing to work with government and the industry to deliver a more competitive, fairer and smarter energy market that works for all consumers.”