Energy Bills to Jump 6.4% as Ofgem Raises Price Cap

📢 Millions of households across England, Scotland and Wales will see their energy bills rise by 6.4% from April 1 when Ofgem’s price cap increase takes effect for the third consecutive quarter.

The average bill for households on a standard variable tariff will increase from £1,738 to £1,849 per year – an additional £111 annually or approximately £9.25 monthly.

While this represents a 9.4% (£159) increase compared to last year, bills remain £531 (22%) lower than during the peak of the energy crisis in early 2023.

Ofgem chief executive Jonathan Brearley said: “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 Secretary Ed Miliband added: “This is worrying news for many families. This Government is determined to do everything we can to protect people from the grip of fossil fuel markets.”

The regulator noted that four million customers have switched to fixed tariffs since November, bringing the total to 11 million people who won’t be affected by this increase.

However, Citizens Advice reports that nearly seven million people are now in debt to their energy suppliers. Dame Clare Moriarty, the charity’s chief executive, expressed particular concern for households with children, noting that “over one in three struggle to afford bills, rising to more than half of those on low incomes.”

This price hike coincides with the Bank of England’s forecast of higher-than-expected inflation this summer, with predictions it could reach 3.7% due to rising household expenses across energy, food, water, council tax and transport. ⚡