The cost of energy under the new price cap is expected to increase

The cost of energy under the new price cap is expected to increase

Kevin Peach

Living correspondent cost

Getty images two women sit at the desk and see a bill.Getty images

The Energy Regulator Off them is to publish its latest price cap, expecting another increase in the cost of gas and electricity in the houses in April.

The cap, which puts a limit on the amount suppliers, can charge for each unit of energy, affects the bills of 26 million houses in England, Wales and Scotland.

Analysts have estimated a 5% increase in prices, due to an increase in bulk costs paid by suppliers.

An increase will kill people’s finance at the same time as water and council increase tax, although average wages are also increasing.

Third growth in a line

The house value on the default or variable tariffs is affected by the cap, which is set every three months. The new cap to be implemented on 1 April will be published on 07:00 GMT.

While the cost of each unit of gas and electricity is taken away, there is no total bill, so how much energy the use of domestic bills is used will be different based on this.

The regulator shows the cap by showing impact on the annual bill of a house with specific energy use.

From October 2021 to January 2025, a price-captive by direct debit, dual-fuel tariffs showing the energy price cap for a specific home showing the chart. The figure was £ 1,216 in October 2021. It increased to a high. In January 2023, £ 4,059, although the Energy Price Guarantee was limited to £ 2,380 for a specific house between October 2022 and June 2023. The bill fell. £ 1,568 in July 2024, before increasing slightly from £ 1,717 in October. The latest price cap declaration means that a specific domestic bill increased from January to March 2025 to £ 1,738 per year.

Consultancy Cornwal Insight analysts, widely considered for accurate predictions, estimated that a house using a specific amount of gas and electricity will be £ 85 per year in its bill from April, the annual cost from April. Will take £ 1,823 per year.

He said that the estimated growth was the result of a combination of cold weather and a decline in gas storage levels throughout Europe, causing a sharp increase in wholesale prices.

If the increase in the cap is confirmed, it would mean that the energy bills will have a third consecutive increase, which will make consumers steps for a better deal and to take steps to assist the bilperior who struggles for the government. Further call for.

Simon Francis, co-cum-cum- “Ordinance of the final fuel poverty coalition.

“But with infection away from dependence on gas, it is important to provide assistance to weaker houses struggling with energy costs and to invest in improving the energy efficiency of homes.”

The duration of high prices means that homes have collectively created a loan of £ 3.8bn to suppliers.

The average house in arrears is more than £ 1,500 for electricity and £ 1,300 for gas.

The bills are about 50% higher than the pre-covered levels, but remain below the peak reaching 2022 when the power prices rose due to Russia’s full-scale invasion of Ukraine.

The latest announcement on the cap is a few days after the plan to offer tariffs published by the regulator which transfer the charges of people standing elsewhere on bills.

These fixed fees, which pay for gas and electricity connections, are controversial, but there was one Immediate backlash against these schemes,

Set up strapline together

How to use energy – and bill – below

Experts shared three tips to put on top of the use of energy during the warm months:

  • If your hot water is too hot to wash your hands, then your setting is too much so let the boiler down
  • Manage your draft, such as putting an unused chimney a black bag with paper, or limiting other drafts around the house
  • Limit the time in the shower to four minutes. Charity Water Aid has compiled Playlist of four -minute songs To keep you on time

If you are struggling to pay energy bills then read more here

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