Peter Smith, the policy director at the fuel poverty charity National Energy Action (NEA), said that although the price increase will take effect during spring as temperatures rise this will be “cold comfort” for many who have struggled to pay their energy bills during the winter.
The average energy bill for households in Great Britain will rise by £111 from April to £1,849 a year for a typical household, after the energy regulator announced the third consecutive increase in the cap on gas and electricity charges.
Analysts at the energy consultancy Cornwall Insight had predicted in January that the April cap would rise to £1,785 a year, but an increase in energy market prices since pushed the figure higher.
Ofgem’s increase is bigger than expected and is third consecutive rise in energy price cap.
The higher than expected price cap, which is updated every quarter, comes as a blow to the government’s election promise to bring down energy bills by “up to £300 by 2030”.
