The UK’s energy regulator announced on Tuesday that the energy price cap for April to June will increase by 6.4%, driven by a recent surge in wholesale prices.
The price cap, which limits the maximum rate per unit and standing charge that can be billed to customers, will rise by more than £110 per year for an average household.
As a result, the annual cost of gas and electricity for a typical household will rise to £1,849, up from the current £1,738.
This marks the third consecutive increase in the energy price cap.
The regulator emphasized the impact of international gas markets on volatile wholesale prices and the need for investment in a cleaner, homegrown energy system.
Approximately 78% of the upcoming price increase is due to rising wholesale costs, while the remaining 22% comes from a slight uptick in policy costs and inflationary pressures.
The annual cost of £1,849 is 9.4% higher than the same period last year but 22% lower than the peak of the energy crisis at the start of 2023.
The regulator warned that energy debts, which began during the energy crisis, have reached record levels and will continue to grow without intervention.