Despite already being increased to the highest cap we’ve seen, Ofgem is set to increase the energy price cap again in April.
Ofgem increases price cap by a further 6.4%
Not only are water and council tax increases coming into effect this April, but households will also be hit with another increase in energy tariffs that will see the average household’s energy bill rise by £111 a year, or £9.25 a month, to £1.849. Set every three months, the price cap has steadily increased, allowing energy suppliers to charge more and more for each unit of energy.
Who is affected?
Any household on the energy grid in England, Wales and Scotland is affected by the price cap. An estimated 22 million homes will see the effects, having already seen a rise in October and January.
Why is it increasing?
Despite analysts forecasting lower energy caps at around 5%, regulators state rising wholesale costs and inflation as the reasons behind the unexpected 6.4% price cap increase.
What’s recommended?
Households are being advised by independent organisations such as Money Saving Expert to switch tariffs to the lowest available fixed rate as soon as possible before the changes hit the market. Doing so should guarantee costs lower than the price increase and provide certainty over coming payments. That is, of course, assuming the rates don’t go down following the next price cap in July, as analysts at Cornwall Insight have forecast.
Convert your home to cost saving renewable energy
Many households have felt the pressure of the cost of living and are feeling the pinch with each increased price cap. Installing renewable energy in your home or business not only helps you work toward a more sustainable future but makes you less vulnerable to the changing rates and tariffs. How?
- Installing solar panels with battery storage can reduce your utility bills by an average of 70%.
- Solar or PV Inverters convert the variable direct current output of photovoltaic solar panels into utility frequency alternating current that can be used in your home.
- Batter storage holds onto the excess energy produced by solar panels during the day and can be used early in the morning or in the evening. By harnessing this power for your own use, you avoid the most expensive times of energy use.
Book a free assessment today!
Every home is different and at NGRE, we are committed to helping you make the most of your home energy consumption. Remaining at the forefront with the latest technology, we ensure you find the right systems for you.