Ofgem price cap: Average energy bill to go up by 54%, regulator announces

Ofgem has announced that the average energy bill in the UK will rise by just under £700 annually after a 54% increase to the price cap.

The new price cap announced on Thursday will take effect in Scotland, England and Wales in April and affect 22 million households.

It comes during a cost of living crisis, with people facing higher taxes and rising costs for food and other items.

Ofgem announced that the average energy bill will rise by £693 a year after the standard tariff increase of 54%.

Many people are struggling amid increases in energy prices and the cost of living generally (Picture: Peter Byrne/PA Wire)

However, your individual bill will be different depending on your size of property and the amount of energy you use.

The average customer will face an annual default tariff of £1,971 – up from £1,277.

Chancellor Rishi Sunak has said the vast majority of households will receive £350 of support to remove the “sting” from the energy crisis.

This will be distributed through council tax rebates for households in bands A to D and an upfront discount on bills.

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Ofgem price cap: Millions prepare for huge energy bill price hike as price cap t...

Reacting to the cap, Andrew Bartlett, chief executive of Advice Direct Scotland, said: “This sharp rise will be a devastating blow for many households across Scotland.“It will cause deep anxiety and financial worries, leaving many people facing the stark choice of heating or eating.

“But Scots don’t have to struggle alone – free, impartial and practical advice is available to everyone in Scotland through our energyadvice.scot service.

“And charities and organisations in Scotland which provide debt, money or energy advice can sign up at homeheatingadvice.scot as a ‘referral partner’ to access a £3m Scottish Government fund for those in fuel poverty or rationing their energy use.”

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