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UK homes face fresh energy pain with price cap set to hit £2,400 this year

The calculation by energy consultancy EnAppSys for the Financial Times underlines that the country’s looming cost-of-living crisis is likely to be protracted as wholesale gas prices continue to trade at historically high levels.

The price cap, introduced in 2019 to protect the bills of roughly 15m households who do not opt for fixed-price deals, is already set to rise by more than 50 per cent in April to £2,000 a year from £1,277, based on average usage.

Ofgem, the energy market regulator, sets the level of the cap twice a year with the next change after April’s due in October. Using the latest market pricing, EnAppSys estimates that later this year the cap could hit between £2,300 and £2,400, unless the government and regulator intervene to relieve pressure on consumers.

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