See how much extra you'll pay as energy bills rise by 13 per cent
Energy bills are set to rise by £221 a year from today as Ofgem raises its price cap by 13 per cent. The increase amounts to an additional £18 per month for the average household, with the energy price cap climbing to £1,862 annually for a typical household paying by direct debit in England, Scotland and Wales. This represents an increase from the current £1,641 cap for a typical household.
The price cap determines the maximum amount customers can be charged for unit rates and standing charges, meaning individual bills could be higher or lower than the price cap figure. Ofgem has attributed the hike to elevated wholesale gas prices driven by the continuing conflict in the Middle East. The cap remains below the levels seen during the peak of the energy crisis in 2022, when the government imposed a ceiling on bills of £2,500.
The cap does not set a maximum on total bills; instead it limits what energy firms can charge for daily standing charges and individual unit rates.
National Energy Action has warned that households already struggling with their bills now face a summer of ongoing financial pressure and uncomfortable and unsafe homes. The charity fears that without action, the response to people struggling to pay their bills will shift towards tighter debt collection, including a greater use of forced prepayment meters, which risks some households losing access to heating and energy altogether.
Adam Scorer, Chief Executive at National Energy Action, said: "The price cap rise should be a red energy warning. Energy inefficient homes take lives in winter and will increasingly threaten the most vulnerable in summer. Fuel poverty means many cannot experience a comfortable and safe temperature at home because the building fabric makes it impossible or the cost of doing so makes it prohibitive. This is a public health emergency for the most vulnerable and needs to be addressed as such."
The charity warned that millions of households remain locked into debt from the previous energy crisis, pushing up bills for everyone and risking more households being forced onto prepayment and effectively cut off from energy.