Energy Bills Set to Rise 5% in April, Reaching Highest Level Since January 2024

The average household energy bill is expected to increase by 5% to £1,823 from April, according to the final forecast from leading research group Cornwall Insight.

This marks an £85 rise from the current rate of £1,738, which remains in effect from January to March. Cornwall Insight, known for its accurate energy price predictions, arrived at this estimate using a robust forecasting system. The projected increase is at the lower end of earlier estimates, which suggested rises of up to 7%.

Although the official rate will not be confirmed until 25 February, when Ofgem announces its decision, an increase is now almost certain. This would mark the third consecutive rise, pushing the energy price cap to its highest level since January 2024.

Ofgem reviews the price cap every three months to determine the maximum amount consumers can be charged per unit of energy. The cap is expressed as an annual bill for a typical household.

Experts Warn of Financial Strain and Call for Action

Dr. Craig Lowrey, principal consultant at Cornwall Insight, warned that rising costs will continue to put pressure on households:

“Families have already faced significant financial strain in recent months, and with energy bills set to rise for a third time in a row, that pressure is only intensifying.”

Dr. Lowrey also emphasized that higher energy costs highlight the urgency of expanding clean energy solutions:

“Some may question whether the push for renewables is working, but the reality is that higher bills only reinforce the need for a faster transition to clean, reliable energy in the UK.”

“Short-term support measures, including social tariffs and one-off payments, will be essential to protect the most vulnerable households from the burden of rising costs.”

Factors Behind the Price Rise

Experts attribute the increase in energy bills to a combination of cold weather and low gas storage levels across Europe. Additionally, the recent end of the transit agreement between Russia and Ukraine, which allowed gas supplies to flow to Europe, has contributed to increased volatility in global gas markets.

Although the price cap is not approaching the extreme levels of 2023, when it peaked at £4,059 in the first quarter, many households will be frustrated by its continued rise.

Government and Industry Reactions

A spokesperson for the Department for Energy Security and Net Zero acknowledged the impact of global gas market instability:

“Every household and business has felt the effects of rising energy bills, a direct result of the UK’s vulnerability to volatile global gas markets.”

“For years, insufficient investment in clean, domestic energy has left us exposed to external shocks. The only way to secure long-term energy affordability is to establish Britain as a clean energy leader, ensuring stability, job creation, and climate protection.”

Energy Secretary Ed Miliband has also urged Ofgem to take stronger action against rising costs. He recently wrote to the regulator, calling for measures to address what he described as the “rollercoaster” of global gas markets.

Meanwhile, National Energy Action Chief Executive Adam Scorer warned that millions of vulnerable households will continue to struggle:

“This will be the third energy bill increase in a row, following three years of unusually high prices. Wholesale market trends suggest another rise could follow in summer.”

“For many, it will feel like an endless winter, where heating becomes a luxury they simply cannot afford.”