Ofgem has warned households to brace for another energy price increase in April, advising customers to consider fixing their energy tariffs for more payment certainty.
The energy price cap will rise by 6.4%, meaning a household with typical gas and electricity usage will see annual bills increase by £111 to £1,849. The cap, which limits the unit price suppliers can charge, affects 22 million homes in England, Scotland, and Wales.
The rise comes as wholesale costs and inflation continue to push prices higher. Standing charges will also increase for gas, though electricity charges will drop slightly. Households in London and North Wales will see the biggest increases of up to £20 per year.
While fixing a tariff could offer savings and stability, analysts predict prices may fall again in July. Some four million households have already switched to fixed deals, and consumer expert Martin Lewis has called fixing a “no-brainer” for those seeking financial certainty.
However, with energy debt at nearly £4 billion, charities warn that the rise will hit struggling households hard. Citizens Advice has urged the government to do more to support vulnerable billpayers, as millions are already in debt to their suppliers.
In response, the government plans to expand the Warm Home Discount, offering eligible households a £150 reduction on their energy bills next winter.
Despite bills remaining 50% higher than pre-pandemic levels, they are still below the 2022 peak when Russia’s invasion of Ukraine triggered a price surge. Analysts say energy market volatility means future price cap predictions could change multiple times before July.
