Ofgem has today announced that the energy price cap for April will be set at £1,849 per year for average usage households paying by Direct Debit.
This is an increase of 6.4% and a third consecutive increase for customers on variable tariffs. The price cap has risen again because of various factors including cold temperatures and low gas storage across Europe, coupled with the ongoing conflict in Eastern Europe.
Richard Neudegg, director of regulation at Uswitch.com comments: “Millions of households still sitting on standard tariffs, which follow the price cap, are about to see their bills rise for the third time in a row.
“The hat-trick hike of 6.4% in April will add £111 to the average annual bill in yet another price cap blow for standard tariff customers.
“Consumers can take action to avoid this. If you are still riding the rising rates, now is the time to find a better deal.
“There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.
“The cheapest fix on the market, currently from Outfox the Market, could save the average household around £179 per year versus the April price cap.
“The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates.
“Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”
What will the average energy unit rates be from April?
The average unit rates and standing charges for the April price cap will be:
| Electricity | Gas | |
|---|---|---|
| Unit rates | 27.03p per kWh | 6.99p per kWh |
| Standing charge | 53.80p per day | 32,67p per day |
What can customers affected by the price cap do about it?
Customers on tariffs affected by the price cap can switch to a fixed deal and save money in the process. Uswitch is offering a range of deals including a British Gas exclusive fix priced at £1,677, which represents a saving of £172 versus the April price cap when it comes into effect.
There are also energy help schemes and energy saving methods that can help put money towards bills or reduce costs by ensuring you’re using energy more efficiently.
At a minimum, though, it’s worth running an energy comparison - enter your postcode below to get started.
Run an energy comparison
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Will energy prices go down this year?
At the moment, prices are due to drop slightly in the summer, but this isn’t a guarantee. The wholesale market remains unpredictable and it’s difficult to be sure whether prices will rise or fall.
