Energy Bills Set to Soar: UK Price Cap Rises 6.4% from April
Ofgem, the UK energy regulator, has announced a 6.4% increase in the energy price cap for the period from April to June 2025. This change will affect millions of households across England, Wales, and Scotland, pushing up energy costs for many consumers.
What does this mean for your wallet?
The new price cap will be set at £1,849 per year for a typical household using electricity and gas and paying by Direct Debit. This represents an increase of £111 per year, or approximately £9.25 per month, for the average household. It's important to note that while the price cap sets maximum rates per unit and standing charges, actual bills will vary based on energy usage, region, and payment method.
Why are energy prices rising again?
The primary driver behind this price hike is a recent spike in wholesale energy prices, accounting for about 78% of the total increase. The remaining 22% is attributed to a small rise in policy costs and associated inflationary pressures. This marks the third consecutive increase in energy bills, reflecting ongoing volatility in global energy markets.
How does this compare to previous years?
While the new cap is 9.4% (£159) higher than this time last year, it remains 22% (£531) lower than at the peak of the energy crisis in early 2023. However, the persistent high costs continue to strain household budgets, coinciding with increases in other utilities and council tax.
What options do consumers have?
Consider fixed tariffs: Since November 2024, four million customers have switched to fixed tariffs, which won't be affected by the price cap change.
Energy efficiency measures: Investing in home insulation and energy-efficient appliances can help reduce consumption and lower bills.
Seek support: Vulnerable households should explore available government and supplier support schemes.
Solar panels: Installing solar panels can generate your own electricity, reducing your reliance on the grid and lowering your bills. While there is an upfront cost, government incentives and falling prices make solar panels an increasingly attractive option. Ready to explore solar for your home? Get your free, no-obligation quote or call us at 0161 207 4044.
Looking ahead: The push for clean energy
To protect consumers from future price volatility, there's a growing emphasis on transitioning to clean, domestically-generated energy sources. This strategy aims to reduce the UK's reliance on global gas markets and stabilize energy costs in the long term.
Get in touch
If you're concerned about rising energy costs and want to explore solar PV systems as a way to reduce your reliance on grid electricity, Atlantic Renewables is here to help. Our team of experts can assess your property and design a custom solar solution to help you save on energy bills. Get your free quote or call us on 0161 207 4044 and start taking advantage of clean, renewable energy today!
