The energy price cap will increase by 6.4% from £1,738 to £1,849 from April 1 for a typical household in England, Scotland and Wales, Ofgem has announced this morning
It will cost the average household around £111 a year more
It is the third consecutive increase in the quarterly cap with the blame put on riding wholesale prices for gas
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.”
Rick Parfett, WWF’s senior policy advisor said: “The quickest way to cut bills and stimulate growth is to replace expensive gas with cheap, clean energy. Bills are still higher than when Russia invaded Ukraine, mostly due to gas price spikes.
“The faster we build renewables and insulate homes, the faster bills will come down. The UK can show international leadership with a rapid shift to clean, home-grown energy that can deliver strong economic growth as well as protecting all our futures.”
