The UK’s energy regulator, Ofgem, is set to announce April’s energy price cap tomorrow! With leading energy forecaster, Cornwall Insight now suggesting a 5% rise, it looks like it’s going to be another expensive year ahead!
Equating to an extra £85 for the average household, this latest prediction means a typical yearly energy bill could rise to approximately £1,823! As the third energy price cap increase in a row, prices will have risen by approximately 16% since September 2024. Unfortunately, this unwelcome news is also expected to put more pressure on household finances and contribute to an overall rise in inflation.
What is causing the April energy price cap rise?
According to the Department of Energy, rising energy bills are a ‘direct result of Britain’s vulnerability to volatile global gas markets’. They also suggest the only way to bring down our energy bills is to make Britain a ‘clean energy superpower’.
Highlighting the need for firm Labour support to build more UK-based renewable energy sources such as wind and solar farms, Chris Lowrey of Cornwall Insight says:
It might be tempting to look at rising bills and conclude that the push towards renewables is not working, and we should scale back on the transition. The reality is higher energy costs only reinforce the need to accelerate our expansion of clean, reliable energy across the UK.”
The need for more support
Consumer advice groups also urge the current government to take action. Heavily critical of Ofgem’s actions, they want to see more measures of support for vulnerable households already feeling the strain.
Jonathan Bean of Fuel Poverty Action says, ‘Ofgem has signed off on profits for shareholders and huge pay packets for energy bosses – but when it comes to protecting us from being ripped off, they’re nowhere to be seen’.
What are energy companies doing?
However, some energy providers are recognising the extra burden on consumers by introducing initiatives to alleviate this.
E.ON Next is offering eight days of free electricity on every Bank Holiday from April 2025 to March 2026. This could potentially save customers up to £28 over the year. To benefit from this, customers must sign up for the Pledge tariff by February 26, 2025.
Julian Lennertz, the Chief Commercial Officer of E.ON Next, said:
It’s widely anticipated that the Energy Price Cap will rise again in April, which will be concerning to households, and especially those already struggling to pay their bills. Beyond the savings customers already make through the Next Pledge tracker tariff, which is designed to remain below the price cap, we are pleased to be providing some extra help, particularly to those who may use more electricity than normal over the Bank Holidays.”
What can you do to fight the April price cap rise?
Financial experts are advising consumers to explore fixed-rate energy deals to protect themselves from future price increases. Earlier this month, we featured some of the best tariffs recommended by Which magazine in anticipation of the latest rise. As with all legally binding contracts, it’s important to assess your circumstances and consider if the tariff fully meets your needs beforehand!
Energy Advice Helpline – Support when you need it!
Here at Energy Advice Helpline, we’ll keep you fully updated following Ofgem’s official announcement tomorrow. We’ll also ensure we continue to support households struggling to meet their energy costs as a result of this. To see if you qualify for a free renewable energy system or insulation grant, please click the link below.
