Energy prices in England, Wales, and Scotland are set to increase by 6.4% in April under Ofgem’s new price cap, adding financial pressure on households. This rise translates to an additional £111 annually or £9.25 monthly for a typical household, bringing the total annual bill to £1,849. The cap, affecting 26 million homes, limits the amount suppliers can charge per unit of energy.
The increase, driven by rising wholesale costs, marks the third consecutive quarterly rise. Prices will be 9.4% higher than the previous year, equating to an annual increase of £159. Standing charges, the fixed fees for gas and electricity supply, are also rising, with some customers facing a £20 annual increase, varying by region.
Jonathan Brearley, Ofgem’s chief executive, acknowledged the challenges posed by the price hike and advised customers to consider switching or fixing tariffs to reduce costs. He urged those struggling to pay bills to contact their suppliers for assistance. Although bills remain below the 2022 peak caused by geopolitical tensions, they are approximately 50% higher than pre-Covid levels. While the cost per unit of energy is capped, total bills depend on individual usage. The regulator illustrates the cap’s impact based on typical household energy consumption.
— news from BBC.com