Energy bills for millions of households are set to go up by a bigger than expected 6.4% from April. Industry regulator Ofgem said the cap on gas and electricity prices would have to rise largely because of higher wholesale prices. It will add around £111 to the average household bill, or about £9.25 per month, increasing it to £1,849. The new cap covers the three month period to June when it will be set again..
The new level of average bills is 9.4% or £159 higher than this time last year, but £531 lower than at the height of the energy crisis at the start of 2023, when the Energy Price Guarantee was in place. Jonathan Brearley, CEO of Ofgem, says: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.
“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system. “. Emily Seymour, Which? Energy Editor at consumer group Which?, said:"The news that the energy price cap will rise by 6.4 per cent in April and is predicted to continue rising over the next year will understandably be worrying for many households.
"It's well worth shopping around for energy deals to see if you could save money by switching. Unfortunately, there's no 'one size fits all' approach when it comes to fixing an energy deal - the best option for your home will depend on your individual circumstances.
"You should compare what your monthly payments would be on a fixed deal with what you'd expect them to be if you remain with the price-capped variable tariff to see what the best option is for you. “As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees. “.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “We’re helping people every day who simply can’t afford this latest price hike. It comes as our research shows the number of people living in a household in debt to their energy supplier has reached a new high of nearly seven million.
“We’re particularly concerned about households with children, where over one in three struggle to afford bills, rising to more than half of those on low incomes. “The government can’t let another winter go by without targeted support for those most in need, and there is a way of paying for this. Our recent analysis found energy network companies made billions in excess profits while households have faced soaring bills, and it’s only right this money be used to help fund better targeted bill support and much-needed debt relief.”.
