Energy bill warning as 2.5million hit by £116 in January hike despite government fixing prices – are you affected?

OVER two million households have seen their energy bills rise by £116 on average despite a government discount.

Households on Economy 7 tariffs have seen a 7.6% jump this year, according to analysis seen by the BBC.

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People on these tariffs pay higher rates at night and cheaper rates in the day time.

But suppliers who offer this tariff can set their own rates and were allowed to increase them on January 1.

In October, the government introduced the energy price guarantee to tackle soaring energy bills.

The discount means the average household is paying £2,500 for gas and electricity.

This discount lasts until April when it will go up to £3,000.

But while the guarantee price promise means the average home is charged a certain unit price, Economy 7 customers pay two different rates.

And the government lets suppliers set these rates themselves. This month, most suppliers raised their rates.

The analysis, by energy consultancy Future Energy Associates, found around 2.5million households on Economy 7 tariffs have seen an average annual rise in their bills of 7.6%.

That means those on these tariffs are now paying on average 46% more than others on electricity-only tariffs.

The consultancy said a typical Economy 7 annual bill now stands at £2,964, much higher than the average £2,500 under the energy price guarantee.

But Ofgem said Economy 7 customers will still be paying less than the government’s energy price guarantee.

A spokesperson for the regulator said: “Our priority is to keep costs down for all customers.

“Economy 7 users pay lower average unit rates than single rate customers and are protected by the government’s energy price guarantee – saving the equivalent of £655 a year on average than if the full cost of electricity was passed on.”

It comes after The Sun first reported millions of customers on Economy 7 tariffs will see bill rises by as much as 8.9% this year.

What help can I get with my energy bills?

If you are struggling with your energy bills there’s a range of support on offer.

A number of energy companies offer grants to customers who can’t keep up with payments.

This includes British Gas, EDF, Scottish Power and Octopus Energy.

British Gas’ fund is worth up to £1,500 for the most in need households – you don’t even have to be a customer.

Millions of households should be in the process of receiving a £400 energy rebate too.

The payment has been split into six monthly instalments. The first two worth £66 were paid in October and November.

A further £67 payment was made in December, and the remaining three worth £67 should be paid in January, February and March.

The rebate should be paid as an automatic discount for the majority of customers.

But if you are on a prepayment meter you should receive vouchers that can be redeemed at your nearest top up point.

You might be able to get help through the Household Support Fund too.

The latest tranche of funding is worth £421 million and councils have until March 31 to allocate their share.

But many have already started handing the money out, or have already done so.

Eligibility criteria is different depending on where you live, as councils get to decide who to give the money too.

But, in most cases, the money is paid to households on a low income or benefits.

If you want to see if you are entitled to a payment, you should contact your local council.

If you don’t know who your local authority is, you can use the government’s council locator tool found on its website.

This post first appeared on thesun.co.uk