Millions of British households are bracing for another financial blow as energy regulator Ofgem confirms the new price cap will increase by 5% starting April 1st.
The adjustment means the typical annual bill for a household paying by direct debit will rise from £1,928 to £2,022 - an increase of £94 that will affect approximately 29 million customers across England, Wales and Scotland.
Why Your Bills Are Rising Again
Ofgem points to rising wholesale energy costs as the primary driver behind this unwelcome change. The regulator reviews the price cap quarterly, with this latest increase reflecting the volatile global energy market.
"Market prices have increased again since the last price cap was announced," explained an Ofgem spokesperson. "This means the cap needs to adjust to reflect the current cost of supplying energy to homes."
Regional Variations and Payment Methods
The impact won't be felt equally across all households. Those using prepayment meters will see their cap set at £2,027, while customers who pay upon receipt of bills face the highest cap at £2,160 annually.
Regional variations also apply, with households in certain areas facing slightly higher or lower caps depending on their location and distribution costs.
Support Schemes Ending as Prices Rise
This price increase comes at a particularly difficult time for many families, as several government support schemes have now concluded. The Energy Bills Support Scheme, which provided £400 to most households last winter, is no longer available.
Consumer advocacy groups have expressed concern about the timing and impact of this latest increase.
What You Can Do to Manage Costs
Energy experts recommend several strategies to mitigate the impact:
- Review your current tariff: Check if you're still on the best available deal
- Submit regular meter readings: Ensure you're only paying for what you use
- Reduce energy consumption: Simple changes like lowering thermostat settings can make a difference
- Explore energy efficiency measures: Many providers offer free or subsidised insulation and other improvements
The next price cap announcement in August will determine whether this upward trend continues through the autumn and winter months.
