Significant Rise in Household Energy Bills
Starting from April 1st, household energy bills for millions of customers are set to increase by 6.4 percent, marking the third consecutive quarter of price cap hikes imposed by Ofgem. This adjustment will elevate the average annual bill for households on a standard variable tariff in England, Scotland, and Wales from £1,738 to £1,849. The increase is largely attributed to a recent surge in wholesale energy prices.
This rise translates to an additional £111 per year for the average household, or approximately £9.25 extra each month, during the three-month period covered by the new price cap. While Ofgem has indicated that a reduction in bills may occur during the summer months, fuel poverty advocates have expressed concern that this latest price cap adjustment will exacerbate the financial strain on vulnerable households.
Comparative Energy Prices in Europe
According to a recent analysis by the Household Energy Price Index (Hepi), London has emerged as one of the most expensive cities in Europe for household electricity. The UK’s reliance on gas as a primary energy source, more so than many other European nations, has significantly driven up electricity costs in the country.
The Hepi report reveals that the average electricity end-user price across Europe witnessed a notable 4 percent increase in January, now standing 1 percent higher than the same period last year. As of January 3, 2025, Berlin and Brussels top the list as the most expensive cities for household electricity, including taxes, with prices reaching:
- Berlin: €40.42 per kilowatt hour
- Brussels: €38.52
- Copenhagen: €37.47
- London: €36.75
- Bern: €36.41
In contrast, the lowest electricity prices were found in:
- Budapest: €9.07
- Kyiv: €9.76
- Belgrade: €10.50
Gas Prices Comparison Across European Cities
In terms of gas prices, Stockholm residents face the highest costs, averaging €33.27 per kilowatt hour, which is three times higher than the European average. This stark contrast is particularly evident when compared to Budapest, where gas prices are the lowest at just €2.49, and Kyiv, at €1.77. Other notable high gas prices include:
- Amsterdam: €18.26
- Bern: €17.41
- Dublin: €12.01 (eighth-highest)
- London: €8.81 (18th highest out of 27 European capitals)
Factors Contributing to Rising Energy Bills
The Hepi report authors noted that the average natural gas end-user price across Europe saw a significant 4 percent increase in January, driven by colder weather conditions and the cessation of gas flows through Ukraine, leading to extensive withdrawals from gas storage. Ofgem has attributed the rising household bills in Britain primarily to escalating global wholesale energy prices.
The recent surge in wholesale prices is not isolated; it reflects broader trends across Europe. The ongoing conflict between Russia and Ukraine has played a pivotal role, particularly after the disruption of the pipeline delivering Russian gas to European nations at the beginning of the year.
Energy Secretary Ed Miliband has emphasized the government’s commitment to lowering bills for all citizens through a “mission for clean, homegrown power that we can control.” He stated, “The only way we can achieve the energy security that the British people deserve is by moving away from fossil fuels that are dictated by petro-states and authoritarian regimes.”
