MailOnline’s new online calculator reveals how much your energy bill will rise in April as Ofgem increases its price cap for a third consecutive quarter.
The average energy bill for a dual-fuel home paying by direct debit will increase from £1,738-a-year to £1,849 from April 1 after a 6.4 per cent increase in Ofgem’s energy price cap.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap from April 1 to June 30.
Today’s price cap rise follows a previous 1.2 per cent rise of £21 for the January 1 to March 31 period.
It will be an unwelcome rise in costs for millions of struggling Britons who are still battling the cost of living crisis.
Greg Marsh, CEO and co-founder of AI household money-saver Nous.co, told MailOnline: ‘The third energy price hike in a row is a serious blow to households.
‘A typical household will be paying more than £500 a year more than they were pre-COVID, and record numbers are in debt to their energy supplier.
‘Ofgem and the Government need to do far more to encourage proper competition so that ordinary people can make decent savings by switching.’
Now, a new calculator released today by AI household money-saving firm Nous.co can help you work out how much your energy costs will go up per month.
Below, select whether you use both gas and electricity, if you have a prepayment meter and how much you currently pay each month. This will give an estimated consumption and will work out the change to your monthly energy payments:
Money-saving expert’s from Nous.co has also shared their six top tips for cutting down on costs when it’s cold.
The first tip is to take a meter reading before March 31 or, if you don’t have smart meter, make sure you take a manual reading on or just before this date so your supplier doesn’t charge you for any extra energy under the new higher rates.
If you do have a smart meter, it’s important to check it isn’t in dumb mode.
Mr Marsh said: ‘Nearly 4 million smart meters in Britain aren’t working, meaning people are being charged based on estimated usage. This can lead to overpaying by hundreds.
‘If readings on your bill are marked “e”, they’re estimates and could be wrong. You should submit regular manual readings if this is happening.’
It is also important to review your credit balance before the price hike comes into place.
‘If you pay your energy bills by direct debit, you should build up some credit over the summer and use this up over winter when your needs are higher,’ Mr Marsh said.
He added: ‘If you’ve got significant credit right now, your monthly payment is set too high and you should ask for a refund from your supplier.’
Ofgem said the energy price cap will increase by 6.4 per cent from April 1 (stock image)
The regulator said a recent spike in wholesale prices was the main driver of the price rise
Another tip is not to ditch your direct debit entirely if you discover it is too low or too high.
The CEO said: ‘It’s the cheapest method of paying for energy. Customers who pay by standard credit currently pay around £100 per year more than direct debit customers.’
The final piece of advice is to save money by switching providers with Nous.co.
Mr Mash explained that most households are out of contract right now and the majority can save the better part of £150 on their energy bills, without having to commit to a fixed deal.
This means they will still benefit if the price cap comes down in the summer as predicted.
The rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.
Ofgem confirmed that the recent spike in wholesale prices accounted for around 78 per cent of the total increase. A small increase in policy costs and associated inflationary pressures made up a further 22 per cent, the regulator added.
It comes after forecasting group Cornwall Insights last week said it expected the typical annual household energy bill would rise by about £85 to £1,823.
One money-saving tip is to take a smart meter reading before March 31 or, if you don’t have smart meter, make sure you take a manual reading on or just before this date so your supplier doesn’t charge you for any extra energy under the new higher rates (stock image)
| Cost | January to March 2025 | April to June 2025 | Change |
|---|---|---|---|
| Buying energy for customers (wholesale costs) | £755 | £841 | £86 |
| Unexpected temporary cost adjustments (adjustment allowance) | £28 | £28 | £0 |
| Build, fix and repair pipes and wires to transport energy (network costs) | £370 | £372 | £2 |
| Supplier business costs (operating) | £232 | £235 | £4 |
| Government social and environmental schemes (policy) | £187 | £198 | £11 |
| Earnings Before Interest and Taxes (EBIT) allowance | £43 | £45 | £2 |
| Uncertain costs and risks (headroom) | £18 | £20 | £2 |
| Extra costs for supplying energy customers using different payment methods (payment uplift) | £16 | £16 | £1 |
| Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance) | £7 | £6 | -£1 |
| VAT (5%) | £83 | £88 | £5 |
| TOTAL | £1,738 | £1,849 | £111 |
The energy price cap sets a maximum price that energy companies can charge people in England, Scotland and Wales for each unit of energy they use.
Ofgem changes the price cap for households every three months.
While the price cap has gone up, in practice, most people will pay less to their energy suppliers in the spring and summer months.
That is because households typically use less energy then, but the rate they are paying per unit would still rise.
