Energy regulator Ofgem will confirm the figure for the energy price cap covering the three months from 1 April to 30 June on Tuesday (25 February).
Electricity and gas are calculated individually, although tariff rates are typically quoted by suppliers for a dual-fuel customer. The current price cap (January to March 2025) is £1,738 per year for a typical dual-fuel consumer.
The cap changes on a quarterly basis: Q1 (January to March inclusive), Q2 (April to June), Q3 (July to September) and Q4 (October to December). The cap is generally announced by Ofgem about six weeks before it will take effect.
The predicted April rise comes after colder weather and limited renewables drained gas storage levels across Europe.
Another energy price increase would be the third consecutive quarterly rise in costs for households. Cornwall Insight expects the price cap to fall slightly in the summer before rising again in October.
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The Cornwall Insight figures do not include potential reforms that could be included from April, including incorporating allowances to fund the Energy-Intensive Industry (EIIs) network charge exemption scheme. There is also a potential extension by Ofgem of the existing ‘supplier bad debt allowance’. These could add at least £20 to forecasts.
‘Well worth shopping around for energy deals’
Any hike in energy prices would be a blow to households, as it will take effect at the same time as various other bill increases, such as those to water and council tax bills in the new tax year.
Emily Seymour, Which?’s energy editor, said: “With the weather still cold, the news that the energy price cap is predicted to rise by 5% in April will be worrying for many households.
“It’s well worth shopping around for energy deals, as we’ve seen a number of tariffs on the market with cheaper rates than the current price cap. There’s no ‘one-size-fits-all’ approach when it comes to fixing an energy deal – the best option for your home will depend on your individual circumstances – but as a rule of thumb, we’d recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees.
“If you’re worried about affording your bills, don’t suffer in silence. Speak to your energy company – they are obliged to help you if you’re struggling.”
