Brits across the nation have been issued a stark warning, ahead of Ofgem’s incoming energy price cap. The 6.4 per cent hike could see your bills spiral by up to £200 a year, according to experts
Households need to act swiftly or get stung by ‘yet another financial hit’, energy experts have warned. It comes as Ofgem’s energy price cap is set to rise by a staggering 6.4 per cent next month in a huge bow to cash-strapped Brits.
This means the average dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 from April 1 – a rise of £111 a year, or £9.25 a month. As we previously reported, this roughly works out that for every £100 you spend on gas and electricity, you’ll soon be spending £106.40.
Remember, the price cap is not a limit on how much the maximum your energy bill can total up to, and is 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. Ahead of the spike, experts over at Grant Store have warned households which use lots of energy – such as big families – could see their bills rise by up to £200 a year.
“An estimated 80 per cent of households in England, Scotland, and Wales are on price-capped variable tariffs, meaning the vast majority will feel the impact of this rise,” the spokesperson said, per Birmingham Live. “Energy providers including British Gas, EDF, Octopus, and OVO are expected to raise their rates accordingly. For many, this means higher monthly payments unless they secure a fixed deal now.”
The ace suggests locking in on a fixed-tariff now to provide ‘much-needed stability and protection’ against any further increases. While Ofgem’s July price cap has yet to be announced – concern grows that it could be another harsh hike for Brits, especially if the Ukraine-Russia war continues to escalate.
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“For those looking to avoid the hike, it’s important to compare fixed-rate deals now,” the spokesperson added. “Using an Ofgem-accredited comparison tool will help find the best options, but speed is key—deals that are available today might not be around much longer. Households should also consider other factors beyond price, such as customer service ratings, smart meter compatibility, and government scheme eligibility, before switching.”
EDF is currently offering a Simply Tracker tariff that charges ‘£25 less than the price cap’ – as well as a Simply Fixed tariff which allows you to lock in at your price and avoid any ‘nasty surprises’. Both tariffs do include an exit fee, so make sure you’re sure you read the full terms and conditions before you sign up for a new tariff.
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