Households in Great Britain are facing yet another energy bill hike, with Ofgem raising the price cap by £111 from April. This means the average annual bill for a typical home will hit £1,849—the third consecutive increase.
Why Are Energy Bills Rising?
The 6.4% jump is due to rising wholesale energy prices, though it’s higher than expected. In January, Ofgem had already raised the cap by 1.2% to £1,738, blaming cold weather across Europe for pushing up demand.
With this latest increase, families will now be paying £600 more per year compared to before Russia’s invasion of Ukraine.
Who Will Be Affected?
Around 9 million households on variable tariffs will feel the impact straight away when the new cap kicks in from April. Those on fixed-rate deals won’t see an immediate change.
It’s worth noting that the cap only limits the unit price of gas and electricity, not the total bill. So, if you use more energy, you’ll pay more.
Price Predictions: What’s Next?
Analysts at Cornwall Insight had originally expected the cap to rise to £1,785 in April. However, market fluctuations pushed it even higher.
The good news? Forecasts suggest a slight drop in the summer. The bad news? It’s likely to climb again in October when colder weather kicks in.
Campaigners Warn: ‘Unbearable’ for Struggling Families
Energy price campaigners say many households are already drowning in unmanageable debt from winter bills.
Peter Smith from National Energy Action (NEA) called the increase “cold comfort” for those who’ve struggled all winter.
“A third successive price cap rise will be unbearable. Bills are already unaffordable, and people are running out of options.”
Government Under Pressure to Act
The government had promised to cut energy bills by £300 by 2030. However, this latest increase is putting even more pressure on ministers to step up support for struggling families.
Jonathan Brearley, Ofgem’s chief executive, acknowledged the strain but pointed to global markets:
“We know price rises are never welcome. But international gas prices remain volatile, which is why investing in clean, homegrown energy is more important than ever.”
For now, though, that’s little comfort for millions facing yet another squeeze on their finances.
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