The Ofgem price cap does not actually limit how much you can pay for energy - instead, it sets the maximum unit price you can be charged for gas and electricity, as well as the maximum daily standing charge, which is a fixed fee that you pay to be connected to the grid.
Switching to a fixed deal at or below the current January price cap level is a no-brainer if you want to avoid the predicted April price rise.
This is according to the latest prediction from energy analysts at Cornwall Insight, who say the Ofgem price cap will rise from £1,738 a year to £1,823 from April.
The anticipated increase in energy bills has been blamed on colder weather and lower levels of gas storage in Europe, resulting in wholesale prices rising sharply.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “Households have been hit hard over the past few months, and with bills set to rise for a third consecutive time, the pressure is not letting up.
