Energy bills surge as Ofgem raises price cap for the third time
- Ofgem's latest price cap increase sees typical energy bills rise by 6.4% to £1,849 annually.
- Over 11 million households have switched to fixed tariffs, potentially saving £244 per year compared to the price cap.
- Consumer advocates urge those on the price cap to consider fixed deals amidst rising costs and inflation.
On April 1, 2025, the UK saw the third consecutive increase in energy prices due to Ofgem's price cap hike, which has led many households to pay more for their energy bills. The average annual bill for a typical household paying by direct debit jumped by 6.4%, escalating to £1,849, marking an increase of £111 from the previous cap. This recent rise not only indicates how costs have risen during an energy crisis but also highlights that bills are still £531 less than the peak figures observed in early 2023. Consumer groups strongly recommend that the 22 million households still under the price cap should consider switching to fixed energy tariffs to mitigate further financial strain. There has been a notable shift, with four million energy customers opting for fixed tariffs since the last cap announcement, bringing the total to 11 million. As energy costs continue to climb, experts in the field stress the importance of locking in lower rates while they are available, indicating potential savings of around £244 annually compared to the current price cap. As legislatures and advocates call for governmental action to address rising energy costs, many households are facing increasing financial pressure amid ongoing inflation in various sectors such as utilities and council taxes. With council tax rates on the rise and other essential services expected to follow suit, the strain on the average family is growing, compounding the challenges posed by the energy price cap hike.