Energy bills set to rise more than expected this spring for millions of households
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ENERGY bills are set to rise again in the spring, leaving millions of households facing increased costs. This hike would mark the third consecutive increase in energy costs following Ofgem's price cap adjustment in October. From tomorrow, Ofgem's price cap will increase from £1,717 to £1,738 per year, impacting 26million households on their supplier's standard variable tariff.
Experts at Cornwall Insights have now issued a revised forecast indicating that the price cap will rise by a further 3%, from £1,738 to £1,785 in April. This is an upward revision from a previous forecast, which had suggested a more modest increase of 1%, bringing the price to £1,762 in April.
Elise Melville, energy expert at Uswitch.com said: "The sudden change from a 1% to 3% increase in the April price cap prediction suggests that energy prices will remain uncertain into next year. "This prediction would mean the average household on a standard variable tariff would pay 3% more on their rates from April – on top of the 1.2% increase in January that consumers will be paying from tomorrow.
"Forecasts get updated as conditions change, so this 3% rise isn’t guaranteed, but energy prices continue to be unsettled.". Ofgem will confirm April's price rise on February 25, 2025. It's important to note that the price cap is not a limit on the overall amount people will pay for their energy.
