Energy bills in the UK are the highest in Europe as consumers face paying more for gas and electricity in the months ahead, according to new analysis.
Earlier this week, Ofgem confirmed that the energy price cap will rise by 6.4 per cent to £1,847 from April to July in a blow to households not on a fixed tariff.
According to the energy regulator, this price hike will add £9.25 a month to their costs on average and is nine per cent (£159) higher annually than the price cap for the same period last year.
Overall, the yearly energy bill for a household using a typical amount of gas and electricity will jump from £1,849 per year, an increase of £111.
While a possible Russia-Ukraine peace deal has seen wholesale energy prices plummet in recent weeks, both Europe and the UK are expected to pay more following a very cold winter.
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Energy bills are soaring in the UK
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Analysts are highlighting how many nations have had to fall back on their gas reserves in recent months, which is pushing up costs in the spring.
Notably, European gas prices have increased and reached a two-year high of just over €58 (£48) per megawatt/hour in February.
Sky News reports that the “UK’s domestic energy bills are the highest in Europe” despite Labour’s electoral pledge to bring down the cost of living.
Last year, Prime Minister Keir Starmer promised to save households £300 by 2030 but critics have noted that bills remain higher than they were before Russia’s invasion of Ukraine in 2022.
Energy Secretary Ed Miliband has outlined his plan for bringing down energy bills
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Chris Shaw, the CEO at Utility Bidder, broke down the predicament facing millions of households in the months ahead.
He shared: “With Ofgem’s energy price cap set to rise by 6.4 per cent from April, there will be UK consumers out there questioning whether now is the right time to switch to a fixed energy deal.
“More than 90 per cent of UK homes pay the standard tariff and the full price cap.
“Fixed rates, however, help give customers peace of mind and provide lots of choice in terms of start and end dates; this is coupled with exit fees and the lost benefit of falling energy prices when you are already under contract.”
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Energy bills are set to rise again this spring
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Shaw added: “Of the major energy companies offering fixed rate deals at this current time, all offer fixed deals to existing customers, with a large majority offering incentives to new customers as well – with some proving more complicated than others.
“It would be recommended that you look into and compare comparison sites to find the best deals for fixing your energy, and this should be only considered if you are locking in the cheapest rate.
“While there is currently no support in place for businesses when it comes to rising energy costs, Ofgem’s announcement will inevitably leave many business owners wondering if this could have a knock-on effect on their current costs.”
Energy Secretary Ed Miliband said: “The way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower – with homegrown clean power that we in Britain control.”