This morning we are waking up to the announcement that the energy price cap is set to rise yet again. The average energy bill for households in Great Britain will rise by £111 from April to £1,849 a year for a typical household, meaning it has risen more than expected.
What does this mean for you?
This 6.4% increase means the bills of households using a typical amount of gas and electricity will rise by £111 or £9.25 a month. Ofgem has suggested billpayers should consider shopping around for a fixed tariff.
The main driver of this rise is a recent spike in wholesale prices as well as small increases in policy costs (your energy deal) and associated inflationary pressure.
Why not see if you qualify for free support to reduce your energy bills?
Is a fixed tariff the answer?
The last price cap announcement in November 2024, saw 4 million customers moving to a fixed tariff. There’s now approximately 11 million people on a fixed energy deal who won’t be impacted by this new change in the price cap.
Ofgem supports ‘homegrown energy’
The cost of energy is still a huge financial challenge for many and Jonathan Brearley, CEO of Ofgem, assures that a clean homegrown energy system is needed:
Our reliance on international markets lead to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.
He explains further that without any intervention the energy crisis will continue to grow, putting families under stress. Also hinting at plans to give households with unmanageable debt the “clean slate they need to move forward.”
Debt Relief Scheme
Although it would require government support, Ofgem plans to combat the ever growing debt that is present in the energy system, supporting those customers dealing with debt due to the energy crisis.
The Debt Relief Scheme would be established and see energy suppliers write off significant debt that will more than likely never be paid back. It would also help pay off debt by debt-matching customer payments.
This scheme would form part of a wider range of measures that are supported by the Government’s proposed expansion of the Warm Home Discount.
‘Homegrown’ energy with Energy Advice Helpline
Energy Advice Helpline is committed to guiding you through this energy price cap rise announcement, and any future ones. By applying for renewable energy, you can begin to generate your own homegrown heat and electricity, making these costly times more manageable. Click below to discover more about renewable energy and how it can help you:
