LONDON: The energy price cap is set to increase by 6.4% from April, the UK’s energy regulator Ofgem announced on Tuesday. This adjustment will be in effect for the period covering April to June 2025.
According to Ofgem, the main driver behind the rise is a recent spike in wholesale prices, which account for approximately 78% of the total increase. Policy costs and inflationary pressures make up the remaining 22%. The updated price cap will result in an average household bill increasing by £111 per year, or around £9.25 per month, for the three-month period.
For an average household paying by Direct Debit for dual fuel, this change equates to £1,849 per year. This amount is 9.4% (£159) higher than the same period last year, but remains 22% (£531) lower than during the peak of the energy crisis at the beginning of 2023, when the Energy Price Guarantee was in place.
Ofgem is encouraging all customers to consider securing a fixed deal before the price cap changes come into effect. They also advise anyone struggling with their bills to contact their energy supplier for support.
Since Ofgem’s last price cap announcement, four million customers have moved to a fixed tariff and will not be impacted by this price rise.