Households have been warned that energy prices could stay high for the rest of the year after Ofgem announced the price cap would go up by 6.4% from April.
The increase will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from £1,738 a year to £1,849.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.
Emily Seymour, energy editor at Which?, told Money: “Unfortunately, energy prices are predicted to remain high for the foreseeable future.
“Predictions from energy firms show that prices will remain around the current level for the rest of 2025.”
She urged the government to introduce a “properly targeted social tariff” to help protect vulnerable customers.
She said the tariff would offer a discounted energy rate for those most in need, based on household income and energy usage, without creating a “cliff-edge based on benefits eligibility”.
For consumers concerned about the rising energy prices, Seymour said fixing an energy tariff now could be a good option.
“Deals change all the time, so look at what your provider has available and use comparison sites to compare with other offers. You may find rates that are close to what you’re paying now that will mean you make savings in the summer months when bills go up,” she explained.
“Tracker tariffs could also be worth considering. These deals are always a certain amount cheaper than the price cap – for example, £50 cheaper – so you know your prices will stay lower than the capped rates for a year.”
However, she warned that there is no “one size fits all approach” so people could always compare their monthly payments on the price cap to any fixed deals to see what their best option is.
“As a rule of thumb, we’d recommend looking for deals close to the current price cap, not longer than 12 months and without significant exit fees,” she added.
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