Energy bill price cap rises by 6.4%
Ofgem has confirmed the new price cap of £1,849 is to come in from April
Last updated 25th Feb 2025
The quarterly energy price cap will change from £1,738 to £1,849 on 1 April 2025.
This increase will see a rise of around £9 a month, or £111 a year for the average user, who's not on a fixed deal.
It's a cap on energy unit price plus standing charge, not a cap on total bills.
Experts had forecasted that bills will rise 5 percent from April.
Responding to the rise in the energy price cap, David Buttress, chief executive of Ovo Energy, called for a social tariff to help vulnerable customers.
He said: "With bills rising again the Government, regulator, and energy companies must work together to introduce a social tariff to shield the most vulnerable from high prices."
Steve Vaid, chief executive at the Money Advice Trust, the charity that runs National Debtline, said: "The impact of high energy prices is clear to see. Energy arrears are now the second most common debt we are helping people with, behind only credit cards."
"This latest price rise will only add to the challenges many people face in keeping up with their bills."
Ofgem said a recent spike in wholesale prices was the main driver of the price rise, accounting for around 78% of the total increase, while a small increase in policy costs and associated inflationary pressures made up a further 22%.
Ofgem chief executive Jonathan Brearley said: "We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households."
"But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it's more important than ever that we're driving forward investment in a cleaner, homegrown system."
"Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We're developing plans that could give households with unmanageable debt the clean slate they need to move forward."
"We welcome the Government's support for these plans, and their plans to expand the Warm Home Discount, which will also offer financial help to nearly three million more households that need it most."