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The UK government should consider reviewing how Ofgem calculates charges to help sustain public support for the expansion of clean energy.

That’s according to an associate director at the Institute for Public Policy Research thinktank, who says Brits want to see the end of the UK’s “costly reliance” on gas and shift to “homegrown, secure, and low-cost renewables”.

It comes as Ofgem today raised the energy price cap by more than expected, meaning the average annual energy bill will increase to £1,849 from April.

Sam Alvis says people must see that the government’s commitment to move to clean power by 2030 shows they are “on their side” when it comes to bringing down energy bills.

But he says there are things Labour could do before then to mitigate the rise in bills, including reviewing how regulator Ofgem calculates its charges.

“Immediate action on household costs can help sustain public support for the rapid expansion of clean energy,” he says.

“The government should consider rebalancing costs between bills and taxation and review how Ofgem calculates charges.”

Average household has paid £3,000 more for energy since 2020

Energy prices have skyrocketed in the past few years – but now we have an estimate for exactly how much the spike has cost an average household since the cost of living crisis began.

Data from Ofgem shows the average household is likely to pay around £750 more a year for their energy than in winter 2020-2021 – an increase of 75%. 

When this is added to the price changes and government support over time, the total extra cost that the average household has had to find for their energy will reach an estimated £3,033 by the end of June 2025, the energy regulator estimates.

The figure is based on an assumed household with 2.4 people living in it, consuming 2,700 kWh of electricity and 11,500 kWh of gas – and comes after Ofgem announced its new energy price cap for April to June this morning, which it has set at £1,849.

The energy price cap limits what utility companies can charge customers for a daily standing charge and each kilowatt-hour of gas and electricity they use.

Ofgem releases the cap quarterly and estimates how much the average household would typically pay over a year at the new unit price.