Energy price cap goes up by 0.2% from January in fresh cost

Energy bills are set to inch higher in the New Year despite falling wholesale prices.

Industry regulator Ofgem announced on Friday that the energy price cap will rise by 0.2% from January 1.

The unexpected rise comes as a blow to millions of households as wholesale energy prices have fallen by 4% over the past three months.

Trusted forecasters Cornwall Insight had predicted a 1% drop.

It means average household energy bills will go up by around 28p a month for a typical household in England, Scotland and Wales. Between January and March, the typical annual dual fuel bill will be £1,758 - up from the current £1,755 cap.

Ofgem said wholesale prices were currently stable and had fallen by 4% over the past three months, but that conditions remained "volatile".

Tim Jarvis, director gene