Energy Price Calculator: See how much extra you’ll pay. (Image: Getty)
are set to rise for millions of households by an average of £9.25 a month starting in April, as announces the new energy price cap.
The regulator changes the price cap every three months, with the latest one set to take effect on April 1 and continue through to June 30.
The new cap means the typical household will pay £1,849 annually for and for a standard dual-fuel direct debit plan.
This represents an average increase of 6.4% per household compared to the cap between January and March. On average, it works out at an extra £111 a year.
It also means that bills will be 9%, or £159 higher than they were at the same time last year.
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Energy bills are set to rise by 6.4% in April for households still on standard tariffs. (Image: Getty)
Rising wholesale costs have been blamed for the rise by the regulator.
The cap does not limit household total bills – the £9.25 monthly rise is based on typical usage – but rather the amounts charged per unit and the daily standing charge.
This means the impact of these changes will vary from household to household, depending on how much fuel is used.
You can estimate how much your bill will increase from April using our energy bills calculator.
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Jonathan Brearley, CEO of Ofgem, says: “We know that no price rise is ever welcome and that the energy cost 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.
“If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
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How to protect yourself from the energy price rise
According to energy regulator Ofgem, around 26 million households are on a Standard Variable Rate (SVR) tariff, which sees electricity and gas rates change in line with the price cap.
However, those opting for a “fixed rate” deal can lock in prices lower than April’s – and today’s – cap.
Richard Neudegg, director of regulation at said: “If you are still riding the rising rates, now is the time to find a better deal.
“There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.”
According to Uswitch, the cheapest fix on the market from Outfox the Market could save the average household around £179 per year versus the April price cap.
Mr Neudegg continued: “The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates.”
He added: “Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”