There are just weeks to go before Ofgem finalises the cap (Image: Getty)
Brits have been dealt a fresh cost-of-living blow as Martin Lewis warns the energy price cap is set to rise again in April—piling yet more pressure on struggling households.
The MoneySavingExpert founder took to social media to sound the alarm, revealing that predictions for the increase in energy bills keep climbing.
He pointed out that EDF expects a 3.3% rise; while British Gas predicts 5%; and E.on Next fears a 5.7% hike.
With just weeks to go before Ofgem finalises the cap, Lewis declared: “It’s now nearly unthinkable that it’ll drop—it’s going to rise. The big question is how much.”
If E.on Next’s forecast proves correct, the price cap will jump by around £100 to £1,838 a year, while British Gas believes the increase will be closer to £85. Even worse, it warns more hikes could be coming, potentially pushing the cap to £1,875 by January 2026.
The latest predictions suggest householders would be wise to shop around for fixed rate deals with a number of the market likely to be at least £100 a year cheaper than the official price cap set by the regulator Ofgem.
Critics of UK energy policy claim the drive for net zero and support for building wind farms, solar farms and new infrastructure are pushing up prices.
However, industry analysts argue that a reliance on expensive gas to provide heating and run power stations is the most important factor.
Experts at Cornwall Insight have been predicting an April rise of 3%, blaming geopolitical tensions, volatile gas markets, and uncertainty over future US energy exports.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, admitted: “This will be disappointing for households hoping for relief. Market volatility is making forecasts unpredictable.”
He said that increases to the price cap in April may be mitigated by changes to the formula used to set tariffs.
Fury over soaring costs
Angry Brits took to social media to slam the never-ending price hikes.
One replied to Martin Lewis saying: “All governments refuse to tackle greedy energy companies, whether it’s Labour or Conservative.”
A second condemned the increases as “Absolutely despicable.”
A third put the regulator, Ofgem, in the dock, stating: “Ofgem should be scrapped – along with every other POINTLESS government quango/regulator.
“Ofgem are facilitating an entirely fake energy market while literally weaponising energy consumption against the population. This is no exaggeration.”
Others took a more optimistic view. One wrote: “By April there’s every chance that they’ll be some kind of ceasefire in the conflict.
On every front I see the potential for energy prices around the world to be falling by then.”
What happens next?
The April price cap will be confirmed on February 25, but the outlook remains grim. Even if a slight dip comes in July, forecasts suggest bills will start climbing again by October.