The average energy bill for dual fuel homes by direct David will increase from 1,738 pounds per year to 1,849 pounds from April 1st.
This follows a 6.4% increase in the OFGEM energy price cap, which is higher than expected. This means that the average invoice will rise by £111 a year.
OFGEM changes the price cap for households every three months, primarily based on energy costs in the wholesale market.
The cap doesn't set the maximum amount a household pays for energy, but people who use more energy will pay more as it limits how much a provider can charge per unit of gas or electricity.
According to solar panel experts at Grant Store, millions of consumers can risk overpayment unless they lock down fixed rate tariffs before the increase takes effect.
They stated: “This increase could add £200 a year to energy bills for millions of consumers, so it is important to take action now to avoid unnecessary overpayments.
“An estimated 80% of households in the UK, Scotland and Wales are based on variable price cap tariffs, meaning the majority will feel the impact of this rise.
“Energy providers in the UK, such as Gas, EDF, Octopus and OVO are expected to raise their fees accordingly, which means that monthly payments will be high unless they currently have a fixed contract.
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“There is always uncertainty about future forecasts, but current indicators suggest that CAP is unlikely to drop significantly for the rest of the year. Locking the tariffs could provide much needed stability and protection against further increases.
“For those who want to avoid hiking, it is important to compare fixed-rate transactions right now. With the OFGEM certified comparison tool, you will find the best option, but speed is important.
“Families should consider other factors besides price, such as customer service ratings, smart meter compatibility, and government scheme eligibility before switching.
“After more than a month has passed before the changes take effect, energy customers will need to act quickly to prevent unnecessary costs. While fixed rate tariffs are not appropriate for everyone, for many, securing a transaction can provide immediate savings and long-term financial security.”
