Customers who pay by direct debit also face payments of up to £250 per month, an increase of more than £144 on current costs.
In February, energy regulator Ofgem announced its steepest ever increase to the price cap level, which will rise from £1,277 to £1,971 per year for customers who pay by direct debit and from £1,309 to £2,017 per year for households that pay as they go with a prepayment meter, from 1st April.
Energy industry analysts were already predicting the price cap will increase further still in October, rising to £2,247 per year for customers who pay by direct debit and £2,299 per year for prepayment customers. At this level, prepayment customers would need to top up their meters with £321 by January 2023 to ensure they have the energy they need during the month.
But following Russia’s invasion of Ukraine and the ensuing volatility in the energy markets, Fuel Bank Foundation predicts that fuel costs will rise even further than previously forecast. (Fig 1).