The energy price cap will rise by 6.4% in April: Here's what you need to know

Energy regulator Ofgem has announced that energy bills for those on price-capped tariffs will rise by 6.4% on 1 April. 

That equates to an increase of about £111 a year, or £9.25 a month, for a home using a typical amount of energy. Daily electricity standing charges are decreasing from 61p per day to 54p per day while gas standing prices will increase from 32p per day to 33p per day. 

The price cap is not on your total bill but on each unit (kWh) of gas and electricity that you use. Households that use more than the average amount of gas and electricity will see a bigger increase in their monthly bills than those that use less.  

The current price cap for January-March 2025 sees a home using a typical, medium amount of gas and electricity pay around £1,738 a year if they are on a variable tariff. The next one will see that figure rise to £1,849. 

The price cap doesn't apply to you if you have signed up for a fixed energy deal.

What will my energy cost in April 2025?

The new average rates for variable tariffs for those who pay by direct debit will be:

  • Electricity unit rate: 27.03p per kWh (currently an average 24.86p)
  • Electricity daily standing charge: 53.80p per day (currently an average 60.97p)
  • Gas unit rate: 6.99p per kWh (currently an average 6.34p)
  • Gas daily standing charge: 32.67p per day (currently an average 31.65p)
  • If you have a prepayment meter, you pay the same standing charge as direct debit customers but slightly lower rates per kilowatt hour. 

    At the new rates, a typical household paying by monthly direct debit can expect to pay around £154 per month for gas and electricity used between April and June. The same ‘typical’ household currently pays £145 per month. 

    Those estimates are based on using a 'medium' amount of energy. The energy regulator Ofgem (which sets the price cap) defines this as 11,500kWh of gas and 2,700kWh of electricity.

    You'll pay a different amount if you use more or less than the ‘medium’. Below, we've compared the annual energy costs of example households using low, medium, and high amounts of energy paying current rates and the rates that begin on April 1, 2025. 

    The actual prices you pay for your energy will vary by region and by how you pay. Different suppliers may split out their unit rates and standing charges differently.

    Your energy supplier should contact you to let you know your new prices before it starts charging them.

    The price cap doesn't apply if you live in Northern Ireland.

    If you have a prepayment meter, your unit rates will be slightly lower than those who pay by direct debit, though your standing charges will be the same. 

    Why is the energy price cap going up?

    Historically, energy prices have tended to fall in spring and early summer as temperatures rise and energy usage drops. 

    But this year, an unusually cold winter with a lack of wind across Europe meant that many countries had to rely on more gas than expected. As a result, gas storage levels have dropped, which has caused prices to rise. 

    Jonathan Brearley, CEO of Ofgem, said: 'Our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.'

    Ofgem also said that while a recent spike in wholesale prices is the main driver of April's price rise, accounting for around 78% of the total increase, an increase in policy costs and associated inflationary pressures make up the remaining 22%. 

    Should I fix my energy prices?

    11 million households are currently on a fixed deal and won’t be affected by the change in the price cap. Four million of those have switched in the last three months - the most since the energy crisis in 2021. 

    Following the price cap rise in January 2025, we noticed several fixed tariffs that cost less than the price cap. These are now less common, but there are still some around. 

    When we last checked, on 18 February 2025, we found eight tariffs that would cost less than the current price cap. While switching to a fixed tariff now may not save you a lot in the short term, it will at least protect you from the price rise coming in April and any others that may come throughout the year. 

    Bear in mind that predictions can change. Should energy prices drop while you're fixed into a deal, and you find yourself wanting to leave your contract early, some fixed deals will charge you hefty exit fees to drop out.

    Before you switch, compare your monthly payments on a fixed deal with those you'd expect to be on the price-capped tariff, and make sure you're not agreeing to exit fees that would stop you being able to leave should things change.

    What if you can't afford your energy bills?

    If you're already struggling to afford your energy bills, there are several resources available to help you. 

    In addition to support from suppliers, there are government schemes designed to help those in need.

    If you're not sure what you might be eligible for, head to our guide to getting 

    source https://www.which.co.uk/news/article/energy-price-cap-will-rise-in-april-heres-what-you-need-to-know-a3KFY9Y3xyEC
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