Energy bills will rise again in the New Year after the regulator Ofgem confirmed its new price cap.

The typical annual household energy bill is set to increase by 0.2% from January. The rise is unexpected, as analysts had predicted that bills would fall slightly.

Ofgem estimates that households with average energy consumption, that pay by direct debit, will see their annual bill rise from £1,755 a year to £1,758 a year.

The price cap for someone paying by pre-payment meter is rising from £1,707 a year to £1,711, and the yearly charge for someone who pays on receipt of bill is going up from £1,890 a year to £1,894.

The new price cap will be 2%, or £37, lower than the same period earlier this year - but bills are still much higher than they used to be.

Ofgem said the price cap increas

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