Why are bills rising in April as energy prices fall
Released On 25th Feb 2023
Why are bills rising in April as energy prices fall?: Due to milder weather recently, energy prices continue to fall and experts have voiced concern about the likely rise in household energy bills in April.
The Energy Price Guarantee (EPG), which places a limit on how much energy suppliers can charge, is set to rise in two months to £3,000.
This will place an automatic 20% increase on customers’ energy bills after already nearly doubling since the beginning of 2022.
This is the reason calls for the Treasury to stop the expected increase in the EPG have been growing throughout the last couple of weeks.
Citizens Advice posted a blog saying: “We believe keeping the EPG at £2,500 should be doable within the Autumn Statement funding envelope & there may be the potential to go further.
“A lower EPG will also have indirect benefits. It will reduce inflation & so encourage economic growth.”
Ofgem’s Chief Executive Jonathan Brearley said in a session at the Business select committee, “Last time we were here, over the summer, we thought that without the EPG, the price might be almost £6,000 a year for the average household. There is some good news, the market has changed quite significantly and for the first time since the start of the gas crisis, we are seeing downward pressure on the prices.
“On existing projections that the EPG will be breached by price cap in July & indeed that means bills going down for customers & significantly reduces the fiscal cost for the EPG in the first place.”
Why are bills rising in April as energy prices fall?
