Tens of millions of homes across the UK are set to pay hundreds of pounds more for their gas and electricity from April, following the recent rise in the energy price cap.
Ofgem confirmed last week that the raised ceiling – which limits the price suppliers can charge – with a whopping 54%, meaning the average household ends up paying £ 1,971 a year, almost double what bills were just a year ago.
This follows months of rising wholesale energy prices that have pushed dozens of energy companies out of business – while others stand to raise their prices in the coming months.
Many are already struggling to pay their bills, even before the price increase, amid reports that two out of five of us have to choose between heating and dining.
With no end to the sky-high costs in sight, when can the gas bill fall?
When will gas prices fall?
Here’s the bad news – gas prices are likely to fall at some point in the near future.
Chris Bowden, Founder and CEO, Squeaky, told Express.co.uk: ‘Without a doubt, the future of energy prices is uncertain and costs will remain historically high and volatile for some time to come.
“It is not clear whether new oil and gas exploration will provide the necessary return given the global pressure to stem climate change by decarbonising the economy.
‘As such, many oil and gas companies are driven to generate free cash more than growth, and this dwindling supply collides with rising demand to push prices up, in the case of gas, to historic highs.
‘The next two years may require almost all of the world’s extra oil and gas production capacity, as demand rises above pre-pandemic levels.’
Since the price cap was introduced, the cheapest tariffs on the market have mostly been £ 200 or more cheaper.
How can you save money on your energy bills?
Money-saving expert Martin Lewis has previously advised that by changing and setting rates annually, you can lock in the lowest price for 12 months and protect yourself from future price increases.
Under normal circumstances, switching is a good way to beat the price cap and save money – but Mr Lewis says switching may not be the right thing to do at the moment.
Instead, he has suggested that your best bet may be to stay on the price cap in April, as the market’s cheapest solution right now is on average 56% more than the cap – unless you are offered a fixed deal that is no more than 40% more expensive than your current rate.
You can check your options on that front on MoneySavingExpert’s website.
MORE: How To Save Money By Having A Cheap Spidey-Sense
Follow Metro across our social channels, on Facebook, Twitter and Instagram
Share your views in the comments below