OFGEM, the energy regulator, has confirmed the increase to the energy price cap - a rise that will result in a record 54 percent bill rise - and blamed on the increase in huge energy market price pressure.
The cap on default tariffs has been increased by £693, from £1,277 to £1,971 for those paying via direct debit - and a £708 rise for prepaid (metered) customers - from £1,309 to £2,017.
Millions of households are to be thrown into fuel poverty - with this being the second energy cap rise in under a year - last time the rise was a lower £139.
The Chancellor, Rishi Sunak has had to intervene with a support package as 85 percent of homes will be stung by the sudden price shock.
At a cost to the Treasury of £9 billion, the measures will impact 28 million households and are three factored:
- Energy companies will be provided with loans to provide customers discounts of £200. This discount however will be spread over the following five years worth of bills - about £36 a year.
- Households that are in council tax bands A to D will get a £150 rebate (a non-repayable rebate) in April to help with energy costs. Bands A to D make up 80 percent of homes. You can check your council tax band online.
- Local councils will be provided with emergency funding (a total of £50m) to provide those requiring additional support.
In a day that will likely be a double whammy of bill trouble - the Bank of England is likely to raise base interest rates today from 0.25 percent to 0.5 percent.