A record-breaking price-hike of nearly £700 is set to make energy bills soar for millions of people.
Energy regulator Ofgem has confirmed its price cap on bills will rise to £1,971, up from £1,277.
It means higher bills for millions, with prepayment customers worst hit, seeing an increase of £708 from £1,309 to £2,017, The Mirror reports.
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Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 from April 1 - in a record-breaking rise of around 54%.
The price cap sets a limit on the rates a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year. The new limit had been set to be announced next week but was brought forward to today.
Prices of wholesale gas have skyrocketed in the aftermath of the pandemic, and now the increase is being passed on to customers.
Ofgem chief executive Jonathan Brearley said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.
“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices – a once in a 30-year event – and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.
“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”
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