Millions of UK households will see their energy bill increased by almost 100 pounds (137 dollars) from April, as the price cap will return to pre-pandemic levels as a result of changes in wholesale energy prices.
The government’s Office of Gas and Electricity Markets announced on Friday.
“For six months from 1 April the price cap will increase by 96 pounds (131 dollars) to 1,138 pounds (1,600 dollars) for 11 million default tariff customers and by 87 pounds (119dollars) to 1,156 pounds (1,584 dollars) for four million pre-payment meter customers,” the energy regulator said in a statement.
The price cap, which is reviewed twice a year by the Ofgem, protects consumers who have not switched energy supplier by ensuring they pay a fair price for their electricity and gas.
The energy regulator said in the wake of the COVID-19 pandemic, the price cap had dropped by 84 pounds 115 dollars) in October to its lowest level yet for the current winter period, but demand for energy has since recovered, pushing wholesale prices back up to more normal levels.
“Energy bill increases are never welcome, especially as many households are struggling with the impact of the pandemic.
“We have carefully scrutinised these changes to ensure that customers only pay a fair price for their energy,” Jonathan Brearley, the regulator’s chief executive, is quoting as saying.
Brearley also advised customers to shop around for a cheaper deal if they want to avoid the increase in April.
Energy suppliers will still be required to provide emergency credit to customers struggling to top up their pre-payment meters, put those who are behind on their bills on affordable repayment plans and should not disconnect their customers
