The cost of gas and electricity bills is set to rise next month following Ofgem's energy price cap announcement. The energy regulator has revealed that the price cap will increase by 54%.
The energy price cap is the maximum amount that suppliers can charge customers for each unit of gas and electricity they use. And with it rising on April 1 it means bills will increase from £1,277 to £1,971 for an average household. Energy companies will be contacting customers this month ahead of the increase, explaining what the changes mean for customers. Money Saving Expert founder Martin Lewis has offered his advice on what Brits should be doing before their energy costs soar, which you can read about here.
The increase in energy bills is due to a high demand for gas combined with a reduced supply, which caused wholesale prices to rise considerably above the price cap. This has been influenced by a surge in demand for energy as countries reopened their economies after lockdown and has also been exacerbated by a reduced gas supply coming from Russia into Europe.
