The energy price cap has risen to record highs, pushing up the price the government will pay to support energy bills.
From January, Ofgem raised the cap on the price of electricity to 67p per unit and 17p for gas.
The decision will not affect the amount households pay for energy as the government has said electricity will cost 34p apiece and gas 10.3p until April.
Without government support, the average household would pay around £4,279 for energy under the new cap. The support will ensure that the average household pays £2,500.
Energy is charged per unit, so those who use more can spend more.
Experts from energy consultancy Auxilione estimate the new cap will cost the government around £15.1bn to subsidize household bills between January and March.