It says the typical annual household bill will go up to Â£1,928.
In recent years the cost of variable tariff energy deals in England, Wales and Scotland has been controlled bythe energy price cap, which is now set every three months.
The cap confirms the maximum price suppliers can charge households per unit of energy on a standard - or default - tariff in normal circumstances. It covers 29 million households.
Energy prices soared after Russia's invasion of Ukraine in February 2022, so in October ministers said household billswould be limited by a temporary government guarantee instead.
Under this, a typical household's annual gas and electricity bill stayed below Â£2,500 despite Ofgem's cap increasing above this level during the period.
The Energy Price Guarantee finished in June 2023, and the Ofgem cap once again became responsible for deciding how much customers can be charged.
From January, Ofgem saysthe typical annual household bill will go up to Â£1,928from Â£1,834, a rise of Â£94 or 5%.
Standing charges - a fixed daily charge covering the costs of connecting to a supply - will remain unchanged at 53p a day for electricity and 30p a day for gas.
Energy is regulated separately in Northern Ireland, where bills are slightly lower.
The calculations for a typical household are based on a direct debit dual fuel customer using 11,500 kWh (kilowatt hours) of gas and 2,700 kWh of electricity a year.
A kilowatt hour is a unit of energy used to calculate your bill.
However, most households aren't typical.
Bills are based on how much energy you actually use, which depends on the number of people, the type of property and its energy efficiency.
The vast majority of people pay for their energy by direct debit, with payments smoothed out across the colder and warmer months of the year.
Analysts expect that energy prices will fall back in March, but billpayers may wish to consider taking advantage of the greater range of fixed deals which are now available on the market.
However, Ofgem urges caution when shopping around.
"People should weigh up all the information, seek independent advice from trusted sources and consider what is most important for them, whether that's the lowest price or the security of a fixed deal," says chief executive Jonathan Brearley.
In July 2023, Ofgem said around four million households had prepayment meters. Many have been in place for years, but some billpayers have been switched to prepayment meters more recently after struggling to pay their bills.
Ofgem reviewed their use afteran investigation by The Timesfound debt agents acting for British Gaswrongly broke into vulnerable people's homes to forcibly fit meters.
Undernew rules, suppliers must give customers more opportunity to clear their debts before installing a meter - contacting them at least 10 times - and they cannot be installed at all in certain households.
The government has promisedto bring prepayment energy charges in line with those for direct debit customers.
In January, households using prepayment meters will see their typical annual energy bill rise to Â£1,960, up from Â£1,949, and still Â£32 more than direct debit customers will pay.
Those who pay every three months by cash and cheque also pay more than those who use other methods of payment.
Their typical annual bill in January will be Â£2,058, Â£130 more a year than if they paid by direct debit.
Some groups across the UK who may struggle to pay billsare receiving additional help through cost-of-living payments:
Vulnerable families can also claim help through theHousehold Support Fund, and - from October 2023 - theWarm Home Discountscheme.
Importantly, the Â£400 discount which all households in England, Wales and Scotland received last winter does not apply this year.
Until the end of March 2023, businesses had their costs limited under the government'sEnergy Bill Relief Scheme.
Under a new scheme running until March 2024,firms get a discount on wholesale prices, rather than costs being capped.
Heavy energy-using sectors, like glass, ceramics and steelmakers, will get a larger discount than others.
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Household energy prices will go up again in January, energy regulator Ofgem has announced.