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Ofgem Confirms Energy Price Cap Increase of 54%

Sharon McDougall - 8th February 2022 - 2 minutes to read

The UK’s energy sector regulator Ofgem has confirmed that the price cap for energy bills is being increased by 54 per cent from April 1st.

Expectations are that close to 22 million energy customers across the country will see their bills increase straight away from the beginning of April.

Ofgem has said it recognises that the price cap rise and the scale of the increase will be “extremely worrying” for a huge number of households.

The organisation has explained that the dramatic increases in the costs of buying gas on wholesale energy markets in recent months have left it with no choice but to raise the price cap, which is designed to protect consumers from being excessively overcharged for their energy supplies.

Companies supplying energy to households in the UK are obliged to tether their prices to the official price cap as set by Ofgem but from April 1st they will be allowed to raise their rates significantly and are expected to do so.

Estimates suggest that the average household with a default energy supply tariff who pays their bills by direct debit will be charged an extra £693 in the coming year as compared with the previous 12 months.

Meanwhile, those who use prepayment meters to keep their homes supplied with energy can expect to see their annual spending on those supplies to increase from around £1,309 to £2,017 over the next year from April.

Ofgem has advised anyone struggling to pay their energy bills now or in the coming weeks to speak to their suppliers and ask for help.

In response to rising energy prices and the broader squeeze on household finances, the charity Advice Direct Scotland has urged people with problem debts to get support from relevant experts if ever they need it.

Conor Forbes, head of policy at the charity, said recently: “The most important advice is to remember that you don’t have to struggle alone.

“There is free and practical advice available for all Scottish households. At this difficult time for many, talking things through with an adviser can help.”

If you live in Scotland and your debts are getting on top of you then Scotland Debt Solutions can help. You can contact one of our experts any time to arrange a FREE and confidential consultation.

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Sharon McDougall


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