The energy bills of millions of households are to rise by 6.4% from April 1 when Ofgem increases its price cap for a third consecutive quarter.
The regulator said the increase, which will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from the current £1,738 a year to £1,849, followed a recent spike in wholesale prices.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.
The quarterly energy price cap will change from £1,738 on 1 April 2025.
— Ofgem (@ofgem) February 25, 2025
The new #pricecap is £1,849.
It's a cap on energy unit price plus standing charge, not a cap on total bills.
More ⬇️ https://t.co/rdAaRTHcHh pic.twitter.com/rkoltJEr4w
This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the height of the energy crisis at the start of 2023.
Ofgem chief executive Jonathan Brearley said: “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.
“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.”
