Ofgem has announced the energy price cap for April to June is now set to rise by 6.4% from current levels meaning an average annual bill of £1,849 for households paying by direct debit.
This means the average household is set to pay over £800 more per year for their energy compared to winter 2020/21 – a 77% increase.
The Ofgem price cap means that energy firms should not charge more than the set rate for unit rates and daily standing charges for those on standard variable tariffs.
The cost of every unit of gas used will surge by over 10%, meaning the cost of gas is now double what it was in winter 2020/21.
Every unit of electricity will go up almost 9%. Around 40% of the time the cost of electricity is also driven by the price of gas due to the country’s energy system.
Also included in the small print is a clause that will allow energy suppliers to increase the profits (EBIT) made on every customer’s bill by 4.1% compared to the current quarter. The wider energy industry has already made £483bn in profit over the course of the energy bills crisis.
Taking into account price changes and government support over time, the total extra cost that the average household has had to find for their energy will reach £3,039 by the end of June 2025. [1]
Ministers have announced that the Warm Home Discount scheme will be expanded from winter 2025/26 to help an additional three million households while debt relief programmes will be improved following a consultation by Ofgem.
Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:
“The soaring cost of gas is driving the current spike in energy bills and the only way out of the problem is to continue drives to improve our energy security and for the Chancellor to announce a £13.2bn, fully-funded, Warm Homes Plan in the Comprehensive Spending Review.
“But alongside the transition away from reliance on gas, it’s crucial to provide support for vulnerable households struggling with energy costs now.
“Ministers are right to be focused on improving the Warm Home Discount scheme and on energy debt, which continues at record levels because households have to find more even money to use the same amount of energy.
“The big question will be how do we pay for these improvements in support. Both Warm Home Discounts and debt relief are traditionally funded through our energy bills. Yet the energy industry makes billions of pounds in profit every year and it beggars belief that Ofgem is increasing the profit and headroom allowances for suppliers in the current climate.
“For now, the advice for households is to make the most of existing energy efficiency schemes and if customers do shop around for a lower energy bill, they must use their own energy usage on price comparison sites. Bills can vary greatly due to different rates for every unit of energy used and the daily standing charges so it pays to be aware of how these might affect the total bill.”
Caroline Simpson, Warm This Winter campaign manager, commented:
“Yet another price cap rise is devastating news but billpayers need to know it is caused because global gas prices are soaring due to factors outside of our control and profiteering energy giants such as Centrica and Norwegian-owned Equinor, the biggest supplier of gas to the UK, who make billions of pounds each year out of our misery.
“It is therefore crucial that the government presses on with plans to fix this broken system and boost our energy security by rapidly increasing our supply of homegrown clean energy to free us from expensive gas and bring down bills for everyone for good.
“This must come alongside reform of electricity markets, investment in energy efficiency in our homes and financial support with the cost of energy for the most vulnerable households.”
James Watson-O’Neill, Chief Executive of the national disability charity Sense, said:
“Yet another increase in the energy price cap – the third in a row – will dismay many disabled people.
“Disabled households are telling us they’re living in crisis. The need to power crucial equipment, such as feeding machines and hoists, means many disabled people have no choice but to use extra energy. Our research clearly shows that many disabled people with complex needs are already struggling to afford their energy bills, with more than two in five (42 per cent) telling us they can’t afford to keep their home warm enough.
“Disabled people are more likely to be in fuel poverty than non-disabled people, and we know it’s not just extra energy bills that can hit hard. There are also the extra costs associated with specialist diets, insurances, therapies and accessible transport that disabled people need to contend with. An increase in energy costs is the last thing disabled people need.
“There is no end in sight and disabled people cannot be left waiting any longer for targeted help with their energy bills. We need the government to urgently implement a social energy tariff, to help level the playing field for those who rely on energy-intensive equipment.”
ENDS
Featured image (c) Jess Hurd.
[1] Data for excess costs above winter 2020/21 baseline is available from our page on the Ofgem price cap.
| Cap change date | Average household energy bill (GBP) | Amount above GBP1,042 per household (weighted for the number of months in price cap period) |
| 01-Oct-20 | £ 1,042 | Baseline |
| 01-Apr-21 | £ 1,138 | £ 48 |
| 01-Oct-21 | £ 1,277 | £ 118 |
| 01-Apr-22 | £ 1,971 | £ 465 |
| 01-Oct-22 | £ 2,100 | £ 529 |
| 01-Apr-23 | £ 2,500 | £ 365 |
| 01-Jul-23 | £ 2,074 | £ 258 |
| 01-Oct-23 | £ 1,834 | £ 198 |
| 01-Jan-24 | £ 1,928 | £ 222 |
| 01-Apr-24 | £ 1,690 | £ 162 |
| 01-Jul-24 | £ 1,568 | £ 132 |
| 01-Oct-24 | £ 1,717 | £ 169 |
| 01-Jan-25 | £ 1,738 | £ 174 |
| TOTAL | £ 2,837 | |
| 01-Apr-25 | £ 1,849 | £ 202 |
| TOTAL | £ 3,039 |