Martin Lewis has shared some “bad news” as new predictions forecast the Ofgem Energy Price Cap could rise by as much as 5.7 per cent in April.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.
Ofgem will change the price cap again in April, with early predictions suggesting an almost 3 per cent hike.
However, Money Saving Expert Martin Lewis has shared some “bad news” as he revealed many energy companies were expecting an even larger increase now.
He added that it was “nearly unthinkable” that energy prices could fall in April.
Taking to X, formerly known as Twitter, Mr Lewis warned his followers: “The predictions for what’ll happen to the energy price cap in April keep rising.
“EDF now predicted Ofgem will increase it by 3.3 per cent, British Gas predicts 5 per cent, Eon Next predicts 5.7 per cent.
“We’re only a couple of weeks from the end of the assessment period. So that means this is getting pretty firm.
“It is now nearly unthinkable that it’ll drop, it is going to rise, the big question is by how much.”
Water bill increase
At the same time, it has been revealed households in England and Wales will see an average £123 or 26% increase to their yearly water bill from April 1.
The rise, confirmed by industry body Water UK, will take the average water and wastewater bill from £480 to £603 for the next year alone.
This equates to an increase of around £10 a month, from £40 to £50.
However millions of households face even steeper rises, with Southern Water customers told they will see a 47% increase, Hafren Dyfrdwy and South West Water bills rising by 32%, Thames Water customers warned they will see a 31% hike and Yorkshire Water raising bills by 29%.
Bournemouth Water customers will also see a 32% increase to their bills.
The increase will see the average yearly Southern Water bill reach £703.
Other factors, such as whether a customer is metered and how much water they use, means the bill changes will vary considerably for customers depending on their circumstances.
The increases are higher than those announced by Ofwat in its new five-year price limits for firms just before Christmas as they include inflation.
The Consumer Council for Water (CCW) said stronger and fairer support was urgently needed to protect struggling households from the largest rise in water bills since the privatisation of the water industry 36 years ago.
