Energy price cap on the rise! As of January 1, 2025, Ofgem, the UK’s energy regulator, will raise the energy price cap from £1,717 to £1,738 annually for a typical household.

The Scottish Sun

What Is the Energy Price Cap?

The energy price cap limits the maximum amount suppliers can charge per unit of gas and electricity for customers on standard variable tariffs. It’s important to note that this cap doesn’t restrict your total bill; instead, your overall cost depends on your energy consumption.

BBC

Implications of the Increase

This adjustment means that households on standard variable tariffs may see a slight rise in their energy bills. While the increase is modest, it’s essential to be aware and take steps to manage potential cost implications.

Steps to Mitigate the Impact

1. Submit Meter Readings: If you don’t have a smart meter, provide an updated meter reading before January 1 to ensure accurate billing. This practice helps prevent overcharging based on estimated usage. The Sun
2. Consider Fixed-Rate Tariffs: Exploring fixed-rate energy deals can offer price stability and potentially lower rates compared to the standard variable tariff. Some fixed deals are currently priced below the new cap, providing an opportunity for savings. The Times
3. Enhance Energy Efficiency: Implementing energy-saving measures, such as improving home insulation or using energy-efficient appliances, can reduce consumption and lower bills.
4. Seek Financial Assistance: If you’re struggling with energy costs, various grants and support schemes are available through energy suppliers and government programs. For instance, suppliers like British Gas and EDF offer assistance to those in need. The Scottish Sun

Looking Ahead

While the upcoming increase is relatively small, staying informed and proactive is crucial. Regularly reviewing your energy usage, exploring competitive tariffs, and considering energy-efficient upgrades can help manage costs effectively.

For personalized advice and to compare energy deals tailored to your needs, consider using services like Energy Heros, which offer free quotes and assistance in finding the best tariffs available.

Key Updates on the Upcoming Energy Price Cap Increase

The Scottish Sun

Exact date you must make vital energy bill change or risk being overcharged in the New Year

Yesterday