Energy prices will rise by up to £117 from April after energy watchdog Ofgem raised the price cap, admitting that higher prices left it no choice.
Customers on the default tariff price cap will pay £117 more per year taking their annual outlay up to 1,254 per year while those on pre-payment meters will see an increase of £106 per year, paying on average £1,242.
What are the energy price caps on default and prepayment meter energy tariffs? See if you're affected and how:
— ofgem (@ofgem) February 7, 2019
The price cap is adjusted twice every year with the rise to be re-evaluated after the summer period which ends on October 1.
Today’s announced rise has been fuelled by higher wholesale energy costs, according to Ofgem, with increased oil prices off the back of demand during Beast from the East to blame. That has had a knock-on effect on electricity prices with £74 of the £117 default tariff rise attributable to that.
The rest is down to network costs for transporting electricity and gas and the price paid for implementing environmental and social schemes.