Energy bills are anticipated to rise again next April, driven by increasing wholesale costs and higher charges resulting from Ofgem’s price cap reforms.
Consultancy Cornwall Insight predicts that Ofgem’s energy price cap will be set at £1,762 for the three months starting in April, marking a 1% increase from the January level.
Regulator Ofgem raised the energy price cap, which dictates consumer bills, in October and has confirmed another increase for January.
According to Cornwall Insight, higher bills will primarily reflect fluctuations in wholesale prices driven by uncertainties around gas supplies, influenced by the Russia-Ukraine war and geopolitical factors such as Donald Trump’s presidency.
Analysts also warned of additional charges to cover supplier bad debts and exemptions for energy-intensive industries under a network charge scheme. These factors could push the April price cap to £1,782, a 2.5% increase compared to January.
Craig Lowrey, principal consultant at Cornwall Insight, remarked, “Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence.
“There are many uncertainties, and while significant price hikes currently seem unlikely, the extent of any increases will depend on how market dynamics and reforms play out.
“What remains clear is that the market is unlikely to deliver lower bills, and issues of affordability and fuel poverty will remain critical challenges.”
