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UK Price Cap Rises 0.2% to £1,758 as April Reduction Is Forecast

Forecasters cite the Budget’s move of renewables costs to taxation as the driver of a likely 8% fall.

Overview

  • Ofgem’s cap increase took effect on January 1, lifting a typical dual‑fuel bill to £1,758, which the regulator says equates to about 28p more per month for an average household.
  • Cornwall Insight forecasts an 8% cut to the cap in April, implying around £138 off a typical annual bill and a move to roughly £1,620, though this remains a projection.
  • Ofgem attributed the January rise to costs including funding for nuclear projects and discounts provided to some households over winter, with standing charges also pressured by policy costs.
  • Eligibility for the Warm Home Discount expands by about 2.7 million households this winter, offering £150 off bills, with automatic entitlement requiring the customer’s name on the account.
  • Energy UK and anti‑poverty campaigners say bills remain too high, noting more than six million households in fuel poverty and about £5.5 billion in domestic energy debt despite the expected April relief.