The average UK household will have paid an additional £3,033 for energy by summer 2024 compared to pre-crisis levels, according to the End Fuel Poverty Coalition. This comes as Ofgem’s price cap is set to increase again in April, adding further financial strain on millions of consumers.
Rising energy costs have become a persistent issue, with household bills remaining significantly higher than before the crisis. The latest figures highlight the continued impact of volatile wholesale energy prices, despite previous government interventions aimed at shielding consumers.
Price Cap Increase Adds to Financial Strain
The energy price cap, originally introduced to prevent excessive charges for households not switching suppliers, has now become the default tariff for many. Cornwall Insight predicts that from April 1, the cap will increase by 5%, pushing the average bill to £1,823 per year.
According to The Guardian, this follows an earlier rise in January 2024, when the cap was set at £1,738, compared to £1,042 in early 2021, according to Ofgem. While the government previously implemented the Energy Price Guarantee to cap annual bills at £2,500, this protection has since ended, leaving households fully exposed to price fluctuations.
According to Simon Francis, coordinator at the End Fuel Poverty Coalition, rising energy costs remain a major concern, particularly for low-income households and those with higher energy needs, such as families and individuals reliant on medical equipment. “Households continue to be at the mercy of global markets,” he said, calling for urgent action to reduce dependency on volatile energy sources.
Calls for Structural Reform in the Energy Sector
Consumer advocacy groups argue that the UK’s energy pricing system requires a fundamental overhaul to prevent future price shocks. Caroline Simpson of the Warm This Winter campaign has urged policymakers to prioritise renewable energy expansion and reform pricing mechanisms to decouple electricity prices from gas.
“These constant hikes show the UK is still too reliant on foreign energy imports,” she said. She also dismissed North Sea drilling as a solution, stating that new fossil fuel developments would primarily benefit energy companies rather than reduce household bills.
