The global energy crisis, exacerbated by Russia’s invasion of Ukraine, is projected to push the average energy bill for British households to £3,000 by the summer. This increase comes after another anticipated rise in energy prices in April.
According to the End Fuel Poverty Coalition, the average annual energy bill in Great Britain is expected to be around £750 higher than it was during the winter of 2020-21, before the Russia-Ukraine war began—representing a 75% increase. The coalition also calculates the cumulative cost of price hikes over the last four years to be £3,033.
Since the invasion, most households have found themselves paying the maximum allowed under the government’s energy price cap, which was introduced in 2019 to protect consumers from exorbitant energy costs. However, the cap, designed to ensure that people who don’t shop around for energy suppliers don’t pay excessively, has now become the de facto rate for millions of British households.
The energy regulator, Ofgem, is set to announce the cap level for bills from 1 April. Analysts at Cornwall Insight, a consultancy firm, predict a 5% increase in the cap for the next three months, raising it to £1,823.
Despite the government’s energy price guarantee, which capped household energy costs at £2,500 per year, the prices many households pay still exceed this figure due to the way the cap is calculated—based on the rate per unit of energy consumed rather than a flat amount.
The End Fuel Poverty Coalition has raised concerns that the rising costs will place a heavy burden on lower-income households, larger families, and those who rely on medical equipment. Simon Francis, coordinator of the group, stressed that the ongoing high energy bills have lasted too long, and the continued reliance on gas prices leaves consumers vulnerable to the volatility of global markets. He also emphasized the need to improve energy efficiency in homes and provide more support for vulnerable households.
The regulator’s most recent adjustment to the cap, made in January, resulted in a 1.2% increase, bringing the average bill to £1,738. This came after a significant jump from £1,042 in the six months leading up to March 2021.
Energy prices soared in the wake of Russia’s invasion of Ukraine, as European countries sought to reduce their dependence on Russian gas. The resulting rise in gas prices has not subsided to prewar levels. Caroline Simpson, a manager at the Warm This Winter campaign, stated that the UK must rapidly increase renewable energy generation and disconnect the price of renewables from gas prices to avoid further price hikes.
Simpson also warned that increased North Sea drilling would not help lower bills, as the UK’s gas fields are nearly depleted, and any newly extracted resources would be sold on the open market, benefiting foreign-owned energy companies and doing little to reduce costs for everyday consumers.
As the cost of energy continues to rise, experts are calling for a broader focus on energy transition, renewable resources, and efficient energy use to protect both the environment and vulnerable households from the ongoing crisis.
Stay tuned for more updates as the situation evolves.
