Energy prices are set to soar from Friday. The record increase in global gas costs will see the energy price cap rise 54% on April 1, leaving many bill payers worried. But how much will that be for the average household? You can read about all the other changes and price increases coming into force across the UK on April 1 here.
The energy price cap is the maximum amount a utility company can charge an average customer in the UK per year for the amount of electricity and gas they use, preventing businesses from simply passing on cost increases to the consumer, reports the Mirror. The cap, set by the regulator Ofgem and first introduced in January 2019, applies to customers who are on a standard variable tariff, typically a provider’s default and most expensive option. From April 1, the cap will rise from £1,277 to £1,971 for a household on average usage. That means a £693 per year increase for the average customer.
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Prepayment meter customers will see an increase of £708 from £1,309 to £2,017. These are average rises though, so use more and you'll pay even more. The BBC also reported the price per day for a Single Rate Electricity Meter from April 2022 by region in the UK. For Wales, the data sourced from OfGem showed:
- South Wales: up 22p a day to 46p - a 94% increase
- North Wales & Merseyside: up 23p a day to 45p - 102% increase
The south Wales region has the fourth highest increase in the UK, while the north Wales and Merseyside region will see the highest. Jonathan Brearley, chief executive of the energy regulator Ofgem, 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. ” To get the latest news on the cost of living crisis, subscribe to our Wales Matters newsletter from WalesOnline here.
