Household energy bills are set to rise by 0.2% from January 1 after Ofgem increased its next price cap.
The regulator said energy bills will rise by about 28p a month for the average dual-fuel household in England, Scotland and Wales.
This amounts to an average overall bill of ÂŁ1,758 per year for those on a default tariff, up from the current ÂŁ1,755.
The unexpected increase comes after experts at Cornwall Insight said they expected prices to fall by 1% because of lower wholesale energy prices.
Ofgem said wholesale prices were currently stable and had fallen by 4% over the past three months, but that conditions remained âvolatileâ.
Tim Jarvis, director general of markets for Ofgem, said: âWhile energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets.
âThe price cap helps protect households from overpaying for energy. But itâs only a safety net and there are practical ways that customers can pay less for their energy.
âWhile wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices.â
