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Ofgem to announce 5% energy bill hike, leaving homes £3,000 worse off since crisis hit

HOUSEHOLDS will have paid an extra £3,000 for their energy bills since the crisis began in 2020, campaigners have warned as prices are set to rise again from April.

Watchdog Ofgem will announce the new energy price cap today for April until July, with experts predicting a 5 per cent rise in bills.

This means the average household is paying around £750 more per year for energy compared to winter 2020-21 — a staggering 75 per cent increase.

According to calculations by the End Fuel Poverty Coalition, factoring in past price changes and government support, the total additional cost to households will reach an estimated £3,033 by June.

The energy price cap sets the maximum amount suppliers can charge per unit of energy in England, Scotland and Wales, and is adjusted by Ofgem every three months.

Last week, analysts at Cornwall Insights forecast that the typical annual household energy bill would rise by about £85, to £1,823.

This will mark the third consecutive rise in the price cap and is a blow to Labour’s election pledge to reduce energy bills by “up to £300 by 2030.”

Campaigners have warned that larger families and those reliant on medical equipment will be hit the hardest.

Coalition co-ordinator Simon Francis called on the government to support struggling households, urging Chancellor Rachel Reeves to announce a £13.2 billion Warm Homes Plan in the upcoming Comprehensive Spending Review.

He said: “The burden of high energy bills has gone on long enough and as long as our energy bills remain tied to the cost of gas, households continue to be at the mercy of global markets and a fossil fuel industry which is making billions of pounds in profit every year.

“But alongside the transition away from reliance on gas, it’s crucial to provide support for vulnerable households struggling with energy costs now and to invest in improving energy efficiency of homes.”

Mr Francis also advised consumers to shop around carefully for the best energy deals, ensuring they compare prices based on their actual energy usage.

Warm This Winter campaign manager Caroline Simpson called for a rapid increase in home-grown renewable energy, cheaper and quicker to produce, and market reform to decouple renewable energy prices from volatile gas costs.

“This is the only way to bring down bills for good and ensure we all benefit,” she said.

The Department for Energy Security & Net Zero was contacted for comment.

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