See how much extra you’ll pay from April after Ofgem rise with our price calculator (Image: Getty)
are set to rise by an average of £9.25 a month from April, in line with 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 gas and electricity on a standard variable dual-fuel direct debit plan. This represents an average increase of 6.4% compared to the cap from January to March, amounting to an extra £111 per year on average. It also means bills will be 9% higher than the same time last year, or £159 more. The regulator has attributed the rise to increasing wholesale costs.
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The energy price cap will rise again next month, but there are ways to avoid a higher bill. (Image: Getty)
However, the impact of these changes will vary depending on each household’s fuel usage.
The cap doesn’t limit total household bills, which means the £9.25 monthly increase is based on typical usage. Instead, it controls the charges per unit of energy and the daily standing charge.
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 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.”
He added: “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.”
Fixed deals protect consumers from price rises for 12 months or more by locking in rates.
Based on the current energy price cap forecast, households on variable tariffs may be able to save “hundreds” of pounds by opting for a cheaper fixed rate.
Ben Gallizzi, energy expert at , said: “Now is the time to take action to avoid the energy price hikes in April. If you haven’t switched in over a year, you’re likely on a standard tariff and could be paying more than you need to.”
He explained that running a quick search on comparison sites, such as Uswitch.com, could help you find a better deal in minutes.
He added: “The cheapest fixed deal on the market is available from Outfox the Market and could save the average household around £239 a year compared to the April price cap.”
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