UK energy bills may increase twice in three months, impacting struggling households amid rising living costs.
This is bad news for everyone struggling already and heating and food costs are really tough now. Martin Lewis says these rises are pretty certain. The big question is just how much they will climb.
Even a small rise is still an increase. A 3% rise means paying £1,824 yearly. This is for average use and direct debit payments. Where you live also affects the final price.
Experts changed their earlier predictions. Global issues like the Ukraine war add to the problem. Trump-era trade concerns also affect costs. Wholesale energy prices are impacting things badly due to this.
The energy price cap limits what firms charge you. It impacts both the unit rate and daily standing charge. Everyone pays a standing charge. This hurts people who use less energy.
This cap covers millions of homes across Britain and Ofgem sets it every three months. It limits the price per energy unit. It applies to standard plans with direct debit.
Currently, gas costs 6.34p per kWh and electricity costs 24.86p per kWh. This made the average bill £1,738. It was just £993 back in 2020/21. It spiked at £2,380 later.
One consultant is calling these forecasts unpredictable. Other experts have stated their concerns and the expected increases varied. Some forecast as low as 3.3%. Others predicted nearly 6%.
Water bills are also set to increase soon. They will rise by over £120, on average, so people will pay above £600 yearly. Other costs are rising in April too. This includes mobile phone and broadband packages.
