Price Cap: Household energy bills set to increase again from April

Energy regulator Ofgem has announced that the energy price cap will increase by 6.4% from April, raising annual bills for a typical household paying by direct debit to £1,849.

This represents an increase of £111 per year, or around £9.25 per month.

The price cap, which limits the amount suppliers can charge per unit of gas and electricity, is reviewed every three months.

The latest rise is primarily due to a recent increase in wholesale energy prices, which account for 78% of the total increase.

Jonathan Brearley, CEO of Ofgem, acknowledged the challenges posed by the price rise, stating: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.”

He added that Ofgem is working on plans to help those in energy debt, including a potential Debt Relief Scheme supported by the government.

The UK government has signalled support for an expanded Warm Home Discount scheme, which could provide financial assistance to nearly three million households.

However, concerns remain about the broader affordability of energy bills, particularly for vulnerable groups.

Polling by National Energy Action and YouGov suggests that nearly half (49%) of adults in Great Britain expect to ration their energy in the coming months.

Additionally, only 42% said they had been able to comfortably afford their heating bill in the last three months without cutting back elsewhere.

New polling has also highlighted the scale of the issue in Wales. Luke Young, Assistant Director at Citizens Advice Cymru, said: “We’re already helping thousands of people across Wales who are struggling to keep up with energy costs. This latest increase will make bills even more unaffordable.”

He added: “Debt is at record levels. Far from things getting better, our polling shows that more than a quarter of households in Wales (28%) are struggling to keep up with energy bills, with renters, households with children and those with a disability or long-term health condition amongst those finding it hardest.

“Energy prices show no sign of dropping significantly this decade. Alongside an urgent need for the UK government to introduce targeted bill support, more must be done to insulate homes in Wales. The Welsh Government’s ongoing commitment to improving home energy efficiency will be key to reducing fuel poverty and protecting households from future price shocks.”

National Energy Action’s chief executive, Adam Scorer, warned: “Households already faced sky-high bills as a result of the energy crisis, and today’s announcement will add to the burden on the most vulnerable.”

He called for additional targeted energy bill support, including a social tariff and increased investment in home insulation.

Age Cymru also raised concerns about the impact on older people, particularly those on low incomes who may no longer receive the Winter Fuel Payment.

A spokesperson said: “This decision is going to be felt by thousands of older people across Wales.”

Energy experts advise households to explore fixed tariffs, which could provide stability against future increases. Richard Neudegg, director of regulation at Uswitch.com, said: “The cheapest fix on the market could save the average household around £179 per year versus the April price cap.”

Emily Seymour, energy editor at Which?, urged consumers to compare deals: “There’s no ‘one size fits all’ approach. We’d recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees.”

The price cap rise will take effect from 1 April, with further adjustments expected in the coming months.

Ofgem continues to encourage consumers to check their options and seek support if struggling with energy costs.