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Energy prices will rise by £693 per year, Ofgem has announced.
The energy regulator made the announcement today, explaining that from 1st April, the average household bills will increase by 54 per cent to £1,971.
It could mean a quarter of British households are expected to face fuel poverty due to the increased cost of living. It also means the steepest ever rise in household bills for Brits.
In the Commons today, chancellor Rishi Sunak announced a number of measures to help struggling families.
Households in tax bands A to D will be given rebates of £150 to help with the cost of rising energy bills. Meanwhile, electricity customers will receive a £200 discount on bills from October. However this needs to be repaid by customers in £40 instalments over five years.
"We are deliberately not just giving supports to people on benefits. Lots of people on middle incomes are struggling right now too, so we have decided to provide the council tax rebate to households in Bands A to D. This means around 80 per cent of all homes in England will benefit," said the chancellor.
Mr Sunak also confirmed eligibility for the warm homes discount will also be expanded to include an extra three million households.
Speaking about the price cap, Ofgem chief executive Jonathan Brearley said: "We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.
"The energy market has faced a huge challenge due to the unprecedented increase in global gas prices - a once in a 30-year event - and Ofgem's role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.
"Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future."
Featured Image Credit: Shutterstock
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