The new Ofgem energy price cap means that the typical household will pay £1,849 annually for gas and electricity, for a standard dual-fuel direct debit plan
Energy bills are set to rise by an average of £9.25 a month from April, as Ofgem announces the new price cap.
The regulator changes the price cap every three months, with the latest one set to take effect on April 1 and continue through to June 30. The new cap means that the typical household will pay £1,849 annually for gas and electricity, for a standard dual-fuel direct debit plan.
This represents an average energy bill increase of 6.4% per household compared to the cap for between January and March. It works out at an extra £111 a year on average. It also means that bills will be 9.0%, or £159 higher than they were at the same time last year.
Rising wholesale costs have been blamed for the rise by the regulator. The impact of these changes will vary from household to household though, depending on how much fuel you use. The cap does not limit household total bills – the £9.25 monthly rise is based on typical usage – but rather the amounts charged per unit and the daily standing charge.
You can estimate how much your bill will increase from January using our energy bills calculator:
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.
“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.
“We welcome the government’s support for these plans, and their plans to expand the Warm Home Discount, which will also offer financial help to nearly three million more households that need it most. If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
