Energy bills price increase: Customers warned of changes coming in January 2023 - how will it affect me?

Major energy suppliers across the UK have reportedly been contacting customers about a price increase that will start in the new year. According to BBC News, some of Britain’s biggest providers say they are making changes to their prices per unit from January 1, 2023.

At a time when the cost of living has already rocketed, many customers are worried to hear that their energy bill could rise yet again. But the good news is that the changes will likely add only pennies, and not pounds, to bills.

The changes are set to affect 12 “energy regions” across the UK from the start of January. It means that providers are allowed to put their prices up to these new maximum levels for gas and electricity.

The government’s Energy Price Guarantee means that the average customer on a standard variable tariff pays 34p per kilowatt hour (kWh) for electricity and 10.3p per kWh for gas. At those rates, a household with typical energy use will pay £2,500 a year.

But the rates are only an average. There are different rates depending on which of the 12 regions of Britain you live in and how you pay your bills, whether that be by direct debit, from regular bills, or on a prepayment meter.

The Government has updated the Energy Price Guarantee rates from January 1, 2023 so suppliers have been allowed to make small price changes for almost every customer - here’s what you need to know.