Compared to April, energy bills will increase by 6 percentage points

With the implementation of the new energy price cap, gas and electricity bills are expected to increase by 634 percent from April

Now that this increase has occurred three times in a row, how much more will you pay?

A significant blow to billpayers will be the 63.4 percent increase in the Ofgem energy price cap starting in April 2025.

Around 78 percent of the increase was due to a recent spike in wholesale prices, which was the main driver of the increase.

An additional 22% comes from a slight increase in policy costs and related inflationary pressures.

Will energy costs increase in April?

The price cap, which establishes the highest rate per unit and recurring fee that consumers may be charged for their energy consumption, will now increase by 9 points per month for the duration of the three-month period.

From April to June, the average household's gas and electricity bills, which are paid by direct debit, will increase by 111 to 1,849 annually.

Energy users will pay more.

It follows a 1.2 percent increase in January.

The average household that paid by direct debit for dual fuel between April and June 2024 paid 1,690 annually; bills will be 9 points 4 percent higher now.

It is 22% (531) less than it was at the beginning of 2023, when the Energy Price Guarantee was in effect, at the height of the energy crisis.

"We understand that no price increase is ever welcome and that the cost of energy remains a huge challenge for many households," stated Jonathan Brearley, CEO of Ofgem.

However, our dependence on foreign gas markets causes unstable wholesale prices and keeps raising bills, so it's more crucial than ever that we move forward with investments in a cleaner, domestic system.

"In the absence of action, energy debt, which started during the energy crisis, will keep rising to record levels. This raises expenses for all clients and causes a great deal of stress for families. We're creating plans that could provide the fresh start that families with unmanageable debt require to move forward.

Ofgem praised the government's backing for these plans and their consultation on the possibility of extending the 150 Warm Home Discount program, according to Brearley.

Although the majority of households will experience a decrease in standing charges starting on April 1, there is still some regional variation, meaning that some households will experience a slight increase of up to 20 per year for a typical dual fuel consumer.

What is the cost of my energy bills?

Below is a table that shows the changes to the energy price cap per unit and standing charge starting in April.

The figures are based on the average for UK residents who pay by direct debit and are rounded to two decimal places. The figures include 5% VAT.

How can I lower my energy costs?

The best plan for them should be reviewed by customers as they weigh their energy options.

Ofgem advises consumers to look for the best offer and think about either repairing their current supplier or moving to a new one. Several fixed direct debit tariffs are currently trading below the April price cap, which could result in savings of about fifty percent when compared to the next price cap level.

Ofgem's Brearley continued: "I would encourage anyone who is having trouble paying their bills to get in touch with their supplier to make sure they're receiving all the assistance they need. Switching or adjusting tariffs now, if at all possible, may also help to reduce expenses and give assurance regarding future payments.

Since Ofgem last announced a price cap in November 2024, four million customers have switched to a fixed tariff.

Eleven million people are currently on fixed contracts.

Go's spokesperson, Gareth Kloet. Compare Energy stated: "Whether you choose a variable rate or a fixed-rate tariff to avoid being impacted by changes in energy prices, it's well worth looking into the many options available as some may save you money."

In order to determine whether switching is still worthwhile, we advise carefully reviewing your contract before making any changes. Your current energy provider may impose an exit fee, which must be taken into account when calculating any possible savings.

Spend some time examining your current tariff, your monthly expenses, and your average energy consumption. Then, check a comparison website to see if there is a less expensive option.

To guarantee the most accurate energy usage, it is also advised to take a meter reading at the beginning of every month, even if you have a smart meter.

Go Dot Compare offered some advice on how to lower energy expenses.

Cut back on extra energy use.

You could save money by rescheduling the use of appliances like dishwashers and washing machines for times when electricity costs are lower, such as after hours.

Purchase an intelligent thermostat.

By automatically changing the temperature, a smart thermostat can help you keep heating expenses under control.

Examine your tariff.

If customers are concerned about price swings, they may want to consider moving from a flexible tariff to a fixed-rate plan.

Change suppliers.

Examine energy rates to determine which one best suits your requirements. Changing suppliers may result in a better deal or more affordable service.

Invest in more energy-efficient appliances.

You can save money by choosing energy-efficient appliances. It's also advised to make sure the property has adequate insulation to stop heat loss. It can be as easy as using energy-efficient lightbulbs or turning off lights when not in use.