Millions of households in Great Britain will see higher energy bills starting in April, as Ofgem, the energy regulator, announced that the energy price cap will increase by £111. This marks the third time in a row that the cap has gone up, bringing the average annual bill for a typical home to £1,849.
The 6.4% increase is larger than many experts had predicted. Analysts had expected only a 1.2% rise, but energy market prices across Europe have climbed, leading to this bigger jump. For many families, this means they are now paying about £600 more per year for gas and electricity compared to before Russia invaded Ukraine.
Around 9 million households on variable tariffs will see their bills go up right away, while those with fixed-rate tariffs will feel the impact later. Households that use more energy than average could see even higher bills, as the cap limits the price per unit, not the total amount paid.
From April, the price for electricity will rise from 25p to 27p per kilowatt hour, while the daily standing charge will drop slightly. Gas prices will also go up, along with a small increase in the gas standing charge.
Campaign groups say this third consecutive increase will be “unbearable” for many, especially after struggling to pay winter bills. The rise also puts pressure on the Labour government, which had pledged to reduce bills by £300 a year by 2030 through its clean energy plans.
Energy Secretary Ed Miliband blamed global fossil fuel prices for the increase, and stressed the need for investment in clean, domestic energy to bring costs down in the future.
In response to the price rise, the government is consulting on expanding the warm home discount, which gives £150 off winter energy bills to eligible households. If approved, almost 2.7 million more households—including nearly a million families with children—would benefit, bringing the total to about 6.1 million, or one in five households.
Ministers are also working with Ofgem to help families struggling with energy debt, aiming to reduce costs by £25-£30 a year.
Jonathan Brearley, Ofgem’s chief executive, acknowledged the difficulty the price rise will cause for many, but said that dependence on international gas markets keeps prices unstable and high. That’s why, he argued, investing in clean, British energy is crucial.
Campaigners welcomed the planned expansion of the warm home discount but said more support is needed. They highlighted record levels of energy debt and the hardship faced by vulnerable families, who are being forced to ration heating and cut back on essentials.
Dame Clare Moriarty, from Citizens Advice, expressed particular concern for families with children, noting that more than one in three already struggle to pay bills, with the figure even higher among low-income households.
shameer