The energy price cap will rise by £693 to £1,971 from April, regulator Ofgem has confirmed, piling more pressure onto already struggling households. 

Boris Johnson was called upon to address the cost of living crisis in the UK at the start of 2022 and in February Rishi Sunak announced plans to offset these rising costs that would cause immense financial strain to many consumers.

Traditionally, the solution to rising gas and electricity tariffs was for customers to shop around for a better deal. However, doing so could now potentially leave households hundreds of pounds out of pocket.

Telegraph Money takes you through the state of the energy market, and whether you should consider switching.

Does it still pay to shop around?

The average fixed deal costs £2,492 over a year, according to Uswitch. This is more than the price cap for variable tariffs.

The 10 cheapest cost an average of £2,259 per year, while the cheapest deal, from SSE, costs £2,050. Some energy firms are offering fixed deals costing up to £4,200.

However, fixing now could protect consumers against any further price cap increases. The cap is supposed to be updated every six months, meaning it is for all intents and purposes a six-month deal that consumers can leave at any time, without paying fees. 

However, Ofgem said it may decide to increase the cap sooner in future, if market conditions require it.

The best way to find a new supplier is through a price comparison site. At present, households may also be able to find a cheaper deal by calling suppliers directly.

The Government said it expects global wholesale prices to come down from next year. This means those locking in for more than 12 months could be left even more out of pocket. 

Which areas will be most affected?

According to analysis of Office for National Statistic data by the Liberal Democrats, the worst hit local authority area will be the Isle of Scilly, where bills will rise by £1,092 on average. Eden in Cumbria and Ryedale in Yorkshire will also see large increases of £940 and £836 respectively. 

Families in the Chancellor Rishi Sunak’s constituency of Richmondshire face an average energy price hike of £836, the sixth highest in England. In the South East, the worst hit areas will be Mole Valley at £767, Sevenoaks at £757, and Rother in Essex at £741.

Does my energy supplier offer a price cap protected tariff?

All suppliers that offer a default tariff have to cap it in line with Ofgem’s rules. However, they are not required to actively market these deals, which can sometimes make them difficult to find.

In some cases, providers have removed default tariffs from their websites. This means customers may be unaware it would cost them less to simply roll on to their supplier’s default tariff, rather than switch deals.

Some suppliers have even taken to “pressure calling” customers with “time sensitive” fixed deals. 

Your supplier has to tell you whether they offer a default tariff if you ask them directly.