Rising Energy Prices

The government has announced that the energy price cap will rise by 54% on 1 April, affecting over 75% of households. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding). Households on prepayment meters will see a larger increase of £708 from £1,309 to £2,017 per year. The government also revealed plans for households to receive up to £350 to reduce the pressure of the rising cost of living, with £200 off energy bills of domestic electricity customers from October.

Why has the price cap increased?

The price cap is Ofgem's way of ensuring energy prices remain fair for both the consumers and providers, factoring in market circumstances. Currently, the cost of wholesale gas is high. The price cap has effectively limited how much of this cost energy suppliers could pass on to their customers, resulting in some suppliers failing. The previous increase in October 2021 and this new increase in April reflect the average rise in the costs that suppliers pay for the fuel in the first place.

Advice for tenants

Ofgem has said that this price cap increase will affect "default tariff customers that haven’t already switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market."

Ofgem have advised:

• If you are on a fixed-term tariff, it would be wise to stay put until the end of the contract, as they're unlikely to find a better rate on a new tariff.
• If you are on a default or variable tariff, these will be affected by the price cap. New fixed deals are currently available at similar prices to the new price cap.

For more information on how to make your home more energy efficient please click here. To find out what financial support is available please click here.

Advice for landlords

Energy efficiency improvements

Energy efficiency is already high on the government's agenda, with its Net Zero by 2050 target and the recent announcement of its strategy to move away from carbon-based forms of energy production, towards heat pumps and other solutions.

Proposals to increase minimum energy efficiency standards mean that landlords will need to invest to increase their Energy Performance Certificate ratings to minimum rating of C on all new and existing tenancies by 2028. Taking a step by step approach will spread the cost of making these improvements, and ensure your landlord saves money during the void period.

Void periods

During the void period, providing accurate meter readings is essential, so you only pay for the energy used. This can also help avoid receiving bill estimates which assume the property is occupied and therefore more energy is being consumed.