The average energy bill for households across England, Scotland and Wales is to increase by 1.2% from Wednesday

Nine million households have been encouraged to submit their meter readings to their energy supplier as prices are set to rise again, with an additional 3% increase predicted for April.

The average energy bill for households across England, Scotland and Wales is to increase by 1.2% from Wednesday after Ofgem raised its price cap in response to wholesale prices.

The increase takes effect just as temperatures are set to plunge and many face warnings of snow. It also comes as analysts Cornwall Insight revised up their previous forecast of a further 1% increase to the price cap in April, now suggesting households will face an almost 3% hike.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “The news of a rise in our forecast will be disappointing to households who will no doubt have been hoping for relief from recent cap rises.”

“However, the turbulence in wholesale markets – a level of volatility we haven’t seen for months – reminds us to remain cautious of predictions, which could very well increase or decrease several times before the April cap is set.”

“With a Trump presidency on the horizon, and an uncertain geopolitical situation in the Ukraine and the Middle East, wholesale market volatility looks set to remain.”

“To add to the wholesale turbulence, other cost measures being decided upon by Ofgem and the Government have the potential to move the cap up or down. As we look ahead, consumers must brace for continued fluctuations.”

Ofgem has urged customers to take advantage of increasing choice among suppliers and look for the best deal to help keep their bills down, saying households could save up to £140.

The price cap does not limit total bills, because householders still pay for the amount of energy they consume.

The latest price cap is 10% or £190 lower than a year earlier, and 57.2% or £2,321 less than during the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022.

Households on standard variable tariffs (SVTs) who do not have a smart meter should record and submit their gas and electricity readings before New Year’s Day to avoid paying for any more energy than they need to at the higher prices. The difference between a week’s worth of energy at January’s rates compared with December’s is £6.67 for the average household.

Comparison site Uswitch calculated that the average household on an SVT is expected to spend £165 on energy in January compared with £135 in December, due to a combination of higher rates and increased usage at the start of the year.