Energy bills to rise by 6.4% from April

The Ofgem energy price cap will rise by 6.4% from April 2025, in a major blow for billpayers.

The increase was largely driven by a recent spike in wholesale prices, accounting for around 78% of the total rise.

A small rise in policy costs and associated inflationary pressures make up a further 22%.

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Are energy bills going up in April?

The price cap, which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use, will now rise by £9.25 a month, over the three-month period.

For the average household paying by direct debit for gas and electricity, bills will rise by £111 per year to £1,849 per year, between April and June.

People who use more energy will pay more.

It follows an increase of 1.2% in January.

Bills will be 9.4% higher than they were between April and June 2024, when the average household paying by direct debit for dual fuel paid £1,690 per year.

It is 22% (£531) lower than at the height of the energy crisis at the start of 2023, when the Energy Price Guarantee was in place.

Jonathan Brearley, CEO of Ofgem, said: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.

“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.

“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.”

Brearley said Ofgem welcomed the government’s support for these plans, and their consultation on potentially expanding the £150 Warm Home Discount scheme.

While most households will see a reduction in standing charges from April 1, some regional variation remains, which means some will see a small increase of up to £20 per year for a typical dual fuel consumer.

How much will I pay for energy bills?

We list how the energy price cap per unit and standing charge will change from April in the table below.

Figures are rounded to two decimal places and are based on the England, Scotland and Wales average for people who pay by Direct Debit. Figures include 5% VAT.

How can I reduce my energy bills?

Customers are being urged to review their energy options and consider the best plan for them.

Ofgem is encouraging people to search for the best deal and consider switching to a new supplier or fixing with their existing supplier. At the time of writing, there are several fixed, direct debit tariffs tracking below the April price cap, which could offer around £50 of savings compared to the upcoming price cap level.

Brearley, of Ofgem, added: “If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”

Four million customers have moved to a fixed tariff since Ofgem’s last price cap announcement in November 2024.

There are now 11 million people on a fixed deal.

Gareth Kloet, spokesperson for Go.Compare energy, said: “It’s well worth researching the deals available as there are many options out there, and some could save you money – whether you decide to opt for a fixed-rate tariff so you aren’t affected by energy price fluctuations, or you opt for a variable rate.

“We recommend looking closely at your contract before making a change, as your current energy provider may charge you an exit fee and this will need to be taken into consideration when working out any potential savings – though it may still be worth switching.

“Take time to look at your current tariff, your average energy use and your monthly costs and look on a comparison website to see if a cheaper option is available.”

Taking a meter reading at the start of each month, even if you have a smart meter, also comes recommended, to ensure energy usage is as accurate as possible.

Go.compare suggested some tips to reduce energy costs:

Reduce unnecessary energy use

Changing when you run appliances such as washing machines and dishwashers to outside of peak hours, when electricity prices may be higher, could save you money.

Invest in a smart thermostat

A smart thermostat may help you control heating costs by adjusting temperatures automatically.

Review your tariff

Billpayers might want to look at switching from a flexible tariff to a fixed-rate plan if they’re worried about price fluctuations.

Switch suppliers

Compare energy tariffs to find the best deal for your needs. Switching suppliers could lead to a cheaper rate or better service.

Upgrade to energy-efficient appliances

Opting to use appliances that need a minimal amount of energy can cut costs. Likewise, ensuring the property is well-insulated to prevent heat loss comes recommended. Simple actions like switching off lights when not in use or using energy-saving bulbs can make a difference.