Explainer

Energy bills: How different areas will be affected by January rule changes

The changes coming into effect are made to the amount that energy suppliers charge per unit of gas and electricity. Credit: PA

Some households are set to pay a couple more pounds per month for their energy bills owing to new changes that will soon be coming into force.

The alterations will differ depending on where in the country people live and how they pay for their gas and electricity.

But how exactly will different areas in the UK be impacted by the rule changes?

What changes can we expect?

Residents in North Wales and the Merseyside area will face the worst hikes in their electricity bills after the fact, and not by direct debit.

Their bills are set to rise by more than £5 per month between January and April.

Bills will also go down for some households. Those in the north of England will likely pay around £3.90 less per month from Sunday.

The changes are made to the amount that energy suppliers charge per unit of gas and electricity they supply.


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When do the changes come into effect?

These changes come into force from Sunday, January 1 and last until the beginning of April.

Compared with recent major swings in how much the government's energy price guarantee, which caps per unit charges, still applies, the changes are small.

The monthly charges are calculated based on what the average household uses in a year - 4,200 units of electricity and 12,000 units of gas - and assume that usage is spread evenly over the year.

As people use more gas during the winter, the actual figures are likely to be somewhat larger.

Centrica owns British Gas Credit: PA

Who will have to pay more?

People who pay on so-called standard credit, which means they get an invoice every month or quarter and do not pay by direct debit, will be the worst hit by the changes.

Their bills are set to go up by around £3.90 per month on average, ranging from around £2.60 in the north of England to £5.60 in the Mersey and North Wales region.

Prepayment meter customers will see an average bill increase of £1.50, while those who pay by direct debit will see an average increase of just two pence.

The system works differently for customers on certain types of tariff, such as Economy 7.

For these customers "suppliers have flexibility to apply slightly different discounts to the individual rates within the tariff, helping to balance out the reduction of more expensive day rates with cheaper night-time electricity rates. Each supplier will approach this differently", the government said.

The Ofgem price cap has always been set at slightly different levels based on where someone lives and how they pay.