Tue, 25 Feb 2025

Tue, 25 Feb 2025 Energy costs expected to rise under new price cap

The regulator will outline the change in gas and electricity prices from April, affecting 26 million households.
Ofgem will announce its new energy price cap on April 1, with analysts predicting a 5% increase in gas and electricity costs due to rising wholesale prices. This would add £85 to the annual bill for a typical household, taking it to £1823 per year. The price cap affects 26 million homes in England, Wales, and Scotland and is expected to hit households already dealing with water and council tax increases. Households on default or variable tariffs will be affected by the new cap. Analysts at Cornwall Insight say the predicted rise is due to colder weather and a fall in gas storage levels across Europe. If confirmed, it would be the third successive increase in energy bills, prompting calls for consumers to shop around for better deals and for the government to assist struggling billpayers. Households have collectively built up £3.8bn of debt to suppliers, with an average household owing over £1,500 for electricity and £1,300 for gas.
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