UK Energy Bills to Rise by £111 Annually as Price Cap Increases

The third consecutive price cap hike will bring average annual household bills to £1,849 starting April, driven by higher wholesale gas prices.

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.