The tally of per year energy bill for dwellings in Great Britain is expected to jump by £111 in April, reaching £1,849 for an average household, following the recent third successive increase in the restriction on charges for gas and electricity by the energy regulating body, Ofgem. The 6.4% increase primarily owes to a hike in wholesale prices, surpassing preceding forecasts.
Advanced forecasters had predicted in January that the cap, previously raised by 1.2% in January to an equivalent yearly rate of £1,738, would surge owing to the dip in gas reserves and escalating market prices due to icy conditions across Europe.
A significant number of homes, around 9 million, that use variable tariffs will feel the immediate impact of the cap’s adjustments in April, whereas the changes will be delayed for those on fixed tariffs. Households using more than the standard energy amount might confront even higher charges, as the cap, recalculated quarterly, limits the rate at which energy suppliers can bill customers for each unit of gas and electricity, not the total bill.
While underscoring that no price surge is welcome and the cost of energy remains a substantial challenge for many households, Ofgem’s Chief Executive Jonathan Brearley attributed the price fluctuations to the dependency on international gas markets and called for a push towards a cleaner, homegrown energy system.
The price cap’s anticipated drop in summer and subsequent rise in October, influenced by the rise in household energy consumption associated with cooler weather, is a stark contrast to the government’s election pledge to reduce energy bills by “up to £300 by 2030.”
Peter Smith, the policy director at the fuel poverty charity National Energy Action, criticized the price cap’s third consecutive hike as unbearable, parallel to the harsh winter that has left many households with unaffordable bills and unsustainable energy debt. He underscored the urgent demand for a comprehensive and more supportive plan from the government and Ofgem to aid these susceptible households.
Source: https://www.theguardian.com/money/2025/feb/25/average-annual-energy-bill-great-britain-energy-price-cap-gas-electricity-charges
