Household energy bills soar by £200 in just a year

AVERAGE energy bills have risen by £200 over the year, research shows.

Households are now paying on average £1,625 for gas and electricity, according to price comparison website Compare the Market. That is an increase of 17pc on the 2016 figure of £1,383.

Energy bills accounted for most of the £286 average rise in household bills, from £2,216 to £2,502.

A £43 increase in average car insurance bills also contributed to the increase. The stark rising cost of energy is highlighted as the government prepares to introduce a price cap.

Lawmakers say the cap on standard variable tariffs – typically a more expensive default – could help reduce average bills by £100. The amount of the cap will be set by Ofgem. It will last until the end of 2020 and could be extended by three years.

Car insurance bills have gone up after the government changed the way compensation payments to accident victims are calculated.

Compare the Market said some regions were hit worse than others, with energy bills in Wales increasing by £458.