Consumers across the UK are set to face higher than anticipated energy bills this April, as fresh projections indicate a steeper increase than previously forecasted. The surge in costs is attributed to a combination of rising wholesale energy prices, increased network charges, and adjustments in government support schemes.
Unexpected Increase in Energy Prices
The latest update from Ofgem, the UK’s energy regulator, suggests that the energy price cap will rise beyond initial predictions, placing additional financial pressure on households already struggling with the cost-of-living crisis. The 6.4% increase means a household using a typical amount of gas and electricity will see their annual bill rise by £111 a year, or £9.25 a month, taking the total bill to £1,849 a year.
Industry experts had initially estimated a 5% rise in prices, but recent calculations indicate that millions of households will see their bills climb by a greater margin. The revised figures mean that an average household could be paying £159 more per year than they were in April 2024.
| Energy Type | Jan – Mar 2025 (Current Cap) | Apr – Jun 2025 (New Cap) |
| Electricity | 24.86p per kWh 60.97p daily standing charge | 27.03p per kWh 53.80p daily standing charge |
| Gas | 6.34p per kWh 31.65p daily standing charge | 6.99p per kWh 32.67p daily standing charge |
Factors Driving the Energy Price Rise
Several key factors are contributing to this unexpected rise in energy costs:
- Wholesale Energy Prices: The global market for gas and electricity remains unstable, with continued disruptions in supply driving up costs for suppliers.
- Increased Network Costs: The cost of maintaining and upgrading the UK’s energy infrastructure has risen, with suppliers passing these expenses onto consumers.
- Reduction in Government Support: Some energy-related subsidies and discounts introduced during the peak of the energy crisis are being scaled back, leading to a higher financial burden on households.
- Standing Charges Changes: While electricity standing charges are decreasing slightly, gas standing charges are rising, affecting consumers differently based on location.
Impact on Households
With inflation still high and wages struggling to keep pace, the energy price increase is expected to exacerbate financial hardship for many families. Charities and consumer advocacy groups have warned that vulnerable households may be forced to make difficult choices between heating and other essential expenses.
Citizens Advice said its research suggested 6.7 million people in England, Wales, and Scotland were in debt to their energy supplier, with total debt nearing £4bn. Officials warn that the increase in prices will be a painful blow for struggling households, particularly those with children.
What Can Consumers Do?
Explore Renewable Energy Solutions with Aspect Group Services and future proof your Energy Costs: Investing in renewable energy solutions can significantly reduce reliance on the grid and lower long-term energy costs. Aspect Group Services offers a range of sustainable energy solutions, including:
- Solar Panels: Generate your own electricity and reduce dependency on traditional energy suppliers.
- Battery Storage: Store excess solar energy to use during peak times or charge the batteries during non-peak times, maximising efficiency and savings.
- Air Source Heat Pumps: An eco-friendly alternative to fossil fuel heating, offering a highly efficient way to heat homes.
- Electric Vehicle Chargers: Convenient home charging solutions for electric vehicle owners, reducing overall energy costs.
- Fabric Building Insulation: Improve home insulation to reduce heat loss, enhance energy efficiency, and lower heating costs.
“Investing in renewable energy and fabric insulation now is one of the smartest financial decisions a homeowner can make. By installing solar panels, battery storage, ensuring your insulation is as good as it can be and installing air source heat pumps, households can take control of their energy usage, reduce their reliance on fluctuating market prices, and enjoy long-term savings year after year. Not only does this provide financial security, but it also helps build a more sustainable future for generations to come.” – Gary Hockins, Aspect Group Services
By adopting these energy-saving technologies, homeowners can mitigate the impact of rising energy prices while contributing to a greener future.
Explore Renewable Energy Solutions with Aspect Group Services: Investing in renewable energy solutions can significantly reduce reliance on the grid and lower long-term energy costs. Aspect Group Services offers a range of sustainable energy solutions, including:
- Solar Panels: Generate your own electricity and reduce dependency on traditional energy suppliers.
- Battery Storage: Store excess solar energy to use during peak times, maximising efficiency and savings.
- Air Source Heat Pumps: An eco-friendly alternative to gas heating, offering a highly efficient way to heat homes.
- Electric Vehicle Chargers: Convenient home charging solutions for electric vehicle owners, reducing overall energy costs.
By adopting these energy-saving technologies, homeowners can mitigate the impact of rising energy prices while contributing to a greener future. As prices rise, there are some steps households can take to manage their energy bills:
- Check for government support schemes: Eligibility for energy discounts or financial assistance should be reviewed regularly.
- Consider fixed-rate tariffs: Ofgem and financial experts, including Martin Lewis, recommend exploring fixed-rate tariffs to secure price stability.
- Improve energy efficiency: Simple steps such as using energy-saving appliances, sealing drafts, and adjusting heating usage can help reduce consumption.
- Contact energy providers for help: Many suppliers offer payment plans, direct debits, or hardship assistance for customers struggling with bills
Government and Political Response
In response to the price increase, Energy Secretary Ed Miliband stated that the government is committed to protecting consumers by extending the Warm Home Discount and boosting domestic energy production. However, opposition parties criticised the move, with Conservative Andrew Bowie calling it a “betrayal” of promises made to lower bills, and Liberal Democrat leader Ed Davey urging a reversal of cuts to the Winter Fuel Payment for pensioners.
Conclusion
With energy prices set to rise more than expected this April, UK households are bracing for another hit to their finances. While some factors remain beyond consumer control, staying informed and exploring support options can help ease the burden. As the government and regulators assess the situation, further intervention may be necessary to protect those most at risk – for more information on this and to provide feedback, please visit Energy OFGEM.
Stay tuned for more updates on the evolving energy crisis and ways to navigate the changing landscape.
