UK energy price cap to rise 3% in April ’25

Britain’s domestic energy price cap is forecast to rise by 3 per cent in April, reaching £1,785 annually for average use, according to Cornwall Insight. This follows a 1 per cent increase in January, further straining households facing a cost-of-living crisis and inflationary pressures.

Analysts attribute the rise to ongoing geopolitical instability, including uncertainty in Ukraine and the Middle East, which has kept wholesale energy prices high. Cornwall Insight’s Craig Lowrey noted that market volatility remains significant, with the forecast subject to further adjustments before Ofgem finalises the cap in February.

The energy regulator calculates the cap quarterly based on wholesale prices, supplier costs, and levies. Benchmark British gas prices have surged 20 per cent recently due to colder weather and concerns over Russian gas supplies via Ukraine, compounding the pressure on consumers.

Attribution: Reuters

Subediting: Y.Yasser