Ofgem: Energy bills to increase under price hike

Ofgem has hiked the price cap of energy bills, which will see prices rise for millions of people across the UK.

Around 15 million families will see their bills rise by around £96 after the move announced by Ofgem.

Chief executive Jonathan Brearley said: “Energy bill increases are never welcome, especially as many households are struggling with the impact of the pandemic. We have carefully scrutinised these changes to ensure that customers only pay a fair price for their energy.

“The price cap offers a safety net against poor pricing practices, saving customers up to £100 a year, but if they want to avoid the increase in April they should shop around for a cheaper deal.

“As the UK still faces challenges around COVID-19, during this exceptional time I expect suppliers to set their prices competitively, treat all customers fairly and ensure that any household in financial distress is given access to the support they need.

“The government and Ofgem have been working with the energy industry and consumer groups to support customers through this difficult time and I urge anyone worried about paying their energy bills to contact their supplier and access the help available,” he added.

Prices will rise by £96 for six months from 1 April to £1,138 for default tariff customers. For those on pre-payment meters, the price will increase by £87 to £1,156.