A typical household will pay more than £100 extra a year from April 2025 as Ofgem’s price cap is higher than expected.
The Ofgem energy regulator has announced a 6.4% increase for the gas and electricity cap, which is the highest cost per unit that suppliers can charge. This means that the annual energy bill price rise for the average household will be £111 a year. The price cap will last three months, but could fall in July.
Ofgem says that the increase was caused by higher wholesale energy prices and inflation. Both Ofgem and Martin Lewis from Money Saving Expert recommend that households look at switching to fixed tariff rates which can lower bills for some customers.
Martin Lewis suggests trying to find lower tariffs on comparison websites, but to avoid using ones that fail to provide quotes from every energy supplier. He also says that it is better to wait a few days as some energy providers have not yet launched their lowest fixed tariffs.
The government’s Warm Home Discount reduces energy bills by £150 for people on low incomes and some benefits. The government has announced that it plans to extend the scheme to include more people who qualify for help paying their bills.
There are many ways to reduce energy costs including upgrading home insulation and turning heating thermostats down. A boiler that is over 15 years old is more likely to be energy inefficient.
Homeowners looking for a new boiler installation in Wrexham may look for an engineer that can provide them with the most efficient option available.
