Overview

• Ofgem announced a 6.4% increase in the energy price cap, raising average annual household bills from £1,738 to £1,849 beginning April 1.
• The rise is primarily attributed to a spike in wholesale gas prices due to colder weather and reduced renewable energy production across Europe.
• The price cap affects households on standard variable tariffs, while those on fixed-rate deals, representing 11 million homes, remain unaffected until their contracts end.
• Energy debts have reached record levels, with Ofgem and charities urging targeted support for vulnerable households, including expanded Warm Home Discount programs.
• The UK government continues to push for investment in renewable energy and nuclear power to reduce reliance on volatile international gas markets and lower long-term costs.