Regulator Ofgem increased its price cap by 5% to reflect a rise in wholesale energy prices. The increase comes as many Britons contend with a cost of living squeeze and the government continues to grapple inflation. Though inflation slowed sharply last month, that was partly down to lower energy costs.
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Richard Neudegg, head of regulation at Uswitch.com, said: “The pandemic has already placed many households under great financial strain. News of the price cap rising by an average of £96 from April will be a bitter pill to swallow for the 11 million default tariff customers with standard meters, many of whom are already struggling to make ends meet.
“The price cap increase is an aftershock of last year’s lockdown, partly because many customers have struggled to pay their energy bills, plunging them into debt that suppliers have been unable to recover.