With the price cap going up, here’s how much more we’ll be paying
From April 1 until June 30, the UK’s energy price cap has gone up by 6.4%, pushing the average annual bill for typical households from £1,738 to £1,849. That’s an increase of £111 a year – not exactly what we wanted to hear. So, what does this mean for our wallets, and what can we do about it? Let’s break it down.
What’s the Energy Price Cap?
The energy price cap is set by Ofgem, the UK’s energy regulator, to limit how much suppliers can charge us per unit of gas and electricity. It doesn’t cap the total bill—just the rates—so the more energy we use, the more we’ll pay. The cap applies to default tariffs, usually for people who haven’t switched suppliers or fixed their rates.
Why Have Prices Gone Up?
The price cap changes every three months, reflecting wholesale energy costs. This time, higher global gas prices and colder weather increasing demand have pushed up prices again. Not great news when most of us are already feeling the pinch.
How Will It Affect Our Bills?
A typical household paying by direct debit will now face an annual energy bill of around £1,849. If we use more energy than average, we’ll pay even more. And don’t forget—standing charges (the daily fee we pay just for having gas and electricity connected) are also creeping up.
What Can We Do to Cut Costs?
- Check If a Fixed Tariff Is Cheaper – Some suppliers are offering fixed deals that might be lower than the cap. It’s worth shopping around.
- Send Meter Readings – Avoid estimated bills by submitting regular readings, so we only pay for what we actually use.
- Cut Down on Energy Waste – Simple things like turning off appliances and reducing heating by just 1°C can save us money.
- Check If We Qualify for Help – There are grants and support schemes available for those struggling with bills. Find out more here: quidsinmagazine.com/energy-bills-support
What’s Next?
There’s a bit of hope: analysts predict the price cap might drop slightly in July if wholesale prices fall. But for now, we’ll have to keep an eye on our usage and make sure we’re getting the best deal possible.
So, let’s stay savvy, shop around, and keep our bills in check as best we can!
Image: Monkey Business Images / Shutterstock
