Millions To See Annual Energy Bill Increase By £693 In April
3 Feb 2022
Millions of people in the UK will see their energy bills go up by £693 from April Ofgem announced.
The price cap – currently standing between £1,277-£1,370 annually for the average household – will be raised by 54%, a record-breaking increase.
“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event,” Jonathan Brearley, CEO of Ofgem, said in a statement on Thursday.
He explained: “Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas,”
“Ofgem is working to stabilize the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”
An estimated 22 million households will be affected by the price hike with experts warning that an even greater energy bill hike, to an average of around £2,300 a year, could take effect from October this year.
With a worldwide squeeze on gas and energy supplies pushing prices over the past year, millions of households are expected to experience fuel poverty for the first time.
In a bid to soften the blow British Finance Minister Rishi Sunak announced that the majority of households would be given a £150 rebate on their council tax.
He also announced that all residential electricity customers would receive a £200 discount on their electricity bills from October, repaid in £40 installments over five years.