Household energy bills to rise by £111 from April as Ofgem confirms new price cap

dailyrecord.co.uk:

Ofgem has announced household energy bills will increase by 6.4 per cent from April. The industry regulator confirmed on Tuesday morning annual energy bills for millions of households on the standard tariff, with typical average usage, will rise from £1,738 to £1,849 from April 1 - an increase of £111 over the coming year (£9.25 per month) Ofgem changes the price cap for households every three months by setting a maximum price energy companies can charge people in Scotland, England and Wales for each unit of energy they use.

However, it’s crucial to remember the price cap does not limit a household's total energy bills, people still pay for each unit of gas and electricity they use which means the more energy you use, the higher the bill, similarly, the less you use, the lower the costs.

The new price cap is 9.4 per cent or £159 higher than this time last year but £531 or 22 per cent lower than at the height of the energy crisis at the start of 2023.Ofgem said a recent spike in wholesale prices was the main driver of the price rise, accounting for around 78 per cent of the total increase, while a small increase in policy costs and associated inflationary pressures made up a further 22 per cent.Ofgem chief executive Jonathan Brearley said: “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.