UK Energy Regulator Raises Price Cap After Two-Year Pause
For the first time in two years, Ofgem lifted the price ceiling on household energy bills. The move follows a sharp rebound in wholesale rates that left suppliers scrambling to keep pace with demand.
What the new numbers mean
- From April 1st, the standard tariff cap will climb £96, hitting £1,138 for the 11 million default‑tariff customers.
- The pre‑payment meter limit will rise by £87 to £1,156, covering another 4 million households.
Industry reaction—some say it’s a hard hit
Peter Earl, chief energy officer at comparethemarket.com, pointed out the paradox:
“Raising energy costs for millions by an average of £96 feels like adding a splash of coffee to an already bitter brew. It questions the very purpose of a price cap, which was set to shield the most vulnerable.”
He added that many families are already “groaning” under pandemic‑related financial pressure. Nearly three‑in‑ten households with kids at home are racing to keep the lights on each week.
Worries that the extra charge isn’t helping
Earlier this week, another hike of £23 was introduced to cover unpaid bill costs under the cap’s “Adjustment Allowance.” Earl warned this might undo the progress made during lockdowns.
“Even after the tight‑knit winter lockdown, folks are still trudging through shaky finances. A fresh £23 lump may hit harder than a cold snap.”
Why the pricing look a bit… winter‑ized
While the cap’s boost is expected to bring prices back to pre‑pandemic levels, the energy industry has had to reckon with a once‑whispered “seasonal chill” turned into a real freeze. Many are scrambling to keep the furnace humming while the market heats again.
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