UK households have been facing pricier energy bills since April as Ofgem increased its price cap for the third time in a row.
The energy regulator has said the average bill for households in England, Wales and Scotland on a standard variable tariff will rise by 6.4% from April 1, taking costs from the current £1,738 per year to £1,849. The hike equates to a £111 annual increase, or around £9.25 per month over the three-month period of the price cap.
By comparison to this time last year, the price cap is 9.4% – or £159 – higher, although it is still 22% – or £531 – lower than at the height of the energy crisis at the start of 2023 when the Energy Price Guarantee was in place.
Ofgem says the increase in costs from April to June 2025 is due to a recent spike in wholesale energy prices, which accounts for around 78% of the total increase. The regulator added that “a small increase in policy costs and associated inflationary pressures” account for a further 22%.
The price cap sets the maximum rate per unit and standing charge that suppliers can charge customers for their energy use. From April 1, an average household paying by Direct Debit for dual fuel will pay £1,849 per year.
However, UK households can beat the April price cap and save up to £179 per year by making a simple switch.
According to price comparison site Uswitch, energy suppliers currently offer deals cheaper than the April price cap, with some deals up to £179 below the April rate.
As such, households that switch tariffs and fix them at a cheaper rate could make significant savings. Experts urge people to start looking for better deals right now to protect against further price increases.
Richard Neudegg, director of regulation at Uswitch.com, said: “The hat-trick hike of 6.4% in April will add £111 to the average annual bill in yet another price cap blow for standard tariff customers. Consumers can take action to avoid this. If you are still riding the rising rates, now is the time to find a better deal.
“There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.
“The cheapest fix on the market, currently from Outfox the Market, could save the average household around £179 per year versus the April price cap.
“The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates.
“Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”
Ofgem adds that 11 million people currently on a fixed deal won’t be affected by the change in the price cap from April and advised those who are concerned about their bills to contact their supplier.
Jonathan Brearley, CEO of Ofgem, said: “If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can.
“Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
