Energy bills: Why are your bills rising so sharply and what can you do about it? 6 months ago

Energy bills: Why are your bills rising so sharply and what can you do about it?

Millions of us face a spike in energy costs

Ofgem on Thursday confirmed energy bills will rise by £693 to an average of £1,971 a year.

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The energy regulator increased its cap by 54 per cent.

The announcement comes as National Insurance is also set to increase in April, and interest rates are also rising in what is set to be a difficult year for Brits.

Here is everything you need to know...

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Why are energy bills rising?

Natural gas is around four times the price it was a year ago. This is largely due to two things: a cold European winter in 2021, which drained supplies, as well as increased demand from Asia and China.

A spike in demand in 2021 after a relatively low-usage year due to the pandemic in 2020 compounded the problem.

Usually, a spike in energy prices can only rise so far, due to something called the price cap - that is the maximum amount suppliers can charge customers for each unit of energy.

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However, the cap has risen significantly, adding hundreds of pounds onto the annual bill for 22 million homes.

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