Energy price cap rises 4%, pushing average household bills higher

A new Ofgem decision raises the energy price cap by 4%, increasing the average annual bill for a standard two-up, two-down home to £1,723. Recent Ofgem reviews show household electricity use fell 7% and gas use 17%, trimming the baseline estimate by about £200, but unit prices have not fallen.

Gas prices jumped 28% over the previous quarter, while electricity benefits from a broader mix of renewables and nuclear. Consumers on direct debit can still claim roughly an 8% discount, and those on fixed-rate contracts should review expiry dates to avoid unexpected increases. James advises checking meters, comparing tariffs, and contacting suppliers if bills seem inaccurate or unaffordable.