Many of Britain's biggest energy suppliers have contacted their customers about price changes coming up in their January bills - leaving some confused. We have prepared this explainer to guide you through the expected increases. 

The regulator Ofgem has confirmed that their price cap will increase by around 20 per cent from 1 January, but the majority of these costs will be absorbed by the price cap in place until March, as per the Energy Price Guarantee. This means that most households will only see their bills changed by pennies, rather than by pounds.

These changes will come into effect from the start of January and will cover all 12 of the different energy "regions" across Britain, with suppliers being allowed to put up their prices to new maximum levels for gas and electricity, with rates laid out in the Government's updated Energy Price Guarantee. 

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Customers across the country will see only changes that are only fractions of pennies, and those in the northern area of the North East will see their electricity price per unit decrease by 0.4 pence. 

How have these changes been decided? 

As is widely reported, the Energy Price Guarantee means that the typical household will pay £2,500 - but this figure is only an average, with customers paying different rates depending on which of the 12 regions you live in, as well as the method you use to pay your bills. 

As we move into the New Year, the Government have updated their Energy Price Guarantee, allowing companies to minimally change their rates for nearly all of their customers. Regional differences in the Ofgem price cap rates also mean that you may see small changes in your bills. 

How much will bills be changing by? 

As the price per unit is changing by only fractions of a penny, customers have been urged not to panic when they receive emails detailing changes to energy prices - as it will likely have little impact on your bills.  

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For those in the northern area of the North East, you may see electricity bills decrease by 0.4p/kilowatt-hour. 

As changes are decided by region, bill-paying method, and supplier, check with your supplier to find out your specific rate changes. 

Which suppliers are changing their rates?

The biggest energy suppliers, Scottish Power, Bulb, EDF, British Gas and Shell have all confirmed to the BBC that they will be passing all allowed changes onto their customers. 

EOn will make price changes for customers who pay by direct debit and through regular bills, but not those who prepay. 

Octopus said that it will pass on any available price cuts, but not price rises, instead, the company will absorb the increases for all except those on the "Economy 7" plan. 

The next big change in energy prices we are set to see will be in April 2023, when the Energy Price Guarantee will increase to £3,000 for the average household. 

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