Customers of major energy suppliers including British Gas and Octopus are being urged to act now or risk energy bills spiking by over £100.
Last month, Ofgem confirmed that its price cap for April was to rise from £1,738 to £1,849 for the average dual-fuel household paying by direct debit. This is a rise of £111 a year, or £9.25 a month. The price cap for someone paying by pre-payment meter is also rising from £1,690 a year to £1,803, and the yearly charge for someone who pays on receipt of bill is rising from £1,851 to £1,969.
The price cap sets the limit on how much your energy supplier can charge you for each unit of gas and electricity you use, plus standing charges. This means that there actually isn’t a cap on energy bills – instead, the headline figure describes how much the typical direct debit household pays per year.
In short, the more gas and electricity you use, the more expensive your bill will be. The price cap news only impacts those on an energy supplier’s standard tariff, so those who are not fixed to a deal. According to the energy regulator, this is around 11million Brits from all major providers including Octopus Energy, British Gas, E.ON Next, EDF, and more.
There are still a few weeks left before the rise comes into place, and energy experts have urged Brits to protect themselves by locking into a fixed deal before April 1. Gareth Whitehill, Director and Renewable Energy Consultant at Grant Store, said: “This 6% increase could add hundreds a year to energy bills for millions of consumers, making it crucial to take action now to avoid unnecessary overpayments.
“An estimated 80% of households in England, Scotland, and Wales are on price-capped variable tariffs, meaning the vast majority will feel the impact of this rise. Energy providers including British Gas, EDF, Octopus, and Ovo are expected to raise their rates accordingly. For many, this means higher monthly payments unless they secure a fixed deal now.”
Gareth noted that households should also consider factors other than price when choosing a new tariff. Customer service ratings, smart meter compatibility, and Government scheme eligibility are all important factors to consider before switching. With only weeks left until the changes take effect, energy customers “must act quickly” as fixed-rate tariffs available today might disappear as providers adjust to the new price cap.
He added: “Using an Ofgem-accredited comparison tool will help find the best options, but speed is key—deals that are available today might not be around much longer. For those looking to avoid the hike, it’s important to compare fixed-rate deals now.”
Ofgem updates its price cap every three months, so the new rates will remain in place until June 30, when it will then be revised again. April’s adjustments were based on wholesale rates from mid-November to mid-February, and current indicators suggest the cap is unlikely to drop significantly for the rest of 2025.
Gareth said: “While future predictions always carry some uncertainty, current indicators suggest the cap is unlikely to drop significantly for the rest of the year. Fixed-rate tariffs won’t be right for everyone, but for many, securing a deal now could provide instant savings and long-term financial security.”
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