OFGEM raise UK energy price cap by 10%, average UK household will pay £149 more for energy
OFGEM the UK energy regulator announced a 10 percent increase in the energy price cap from October. This means the average UK household faces higher bills, just as the colder winter months arrive and households start to turn the heating on.
The previous energy price cap of £1,568 increased to £1,717 on 1st October. Electricity increased to 24.5p per kWh from 22.36p per kilowatt-hour. Gas increased to 6.24p per unit from 5.48p.
Standing charges have also increased, the cap for standing charges for electricity rose from 60.12p to 60.99p per day. The standing charge for gas increased from 31.41p to 31.66p.
Poorly insulated homes will see much bigger increases in energy costs
Homes with poor insulation and poor energy efficiency face the biggest impact of rising energy prices on bills.
Rightmoves energy bill tracker shows how EPC ratings affect energy costs for different types of property.
Energy costs in homes with a ‘C’ energy rating could pay around twice as much as those with an ‘A’ rating. Homes with a ‘D’ rating could pay around 3 times as much on energy and homes with a ‘E’ rating or worse could be paying 4 times more on energy bills than the most energy efficient homes.
The best fixed rate energy deals can beat the price cap
The energy price cap reflects the maximum rates for standard variable tariffs. A fixed-rate energy deal can provide peace of mind over the winter period.
If you’re out of contract it’s worth comparing energy prices and offers to see if you can secure a cheap fixed rate energy deal.
Some of the best 12 month fixed energy tariffs remain less than the price cap. EDF’s Simply Fixed Direct Nov25 works out at £1,588 & Utility Warehouse’s (UW) Fixed Saver 31 tariff enables households to lock in energy costs at £1,592 until November 2025. This represents an annual saving of £125 – £129 compared with October’s price cap.
Analysts believe further energy price rises will come in the new year, so consider taking advantage of cheaper energy deals now… WOW Compare energy prices.
Will energy prices rise or fall in 2025?
Ofgem will announce January 2025 ‘Energy Price Cap’ towards the end of the year.
Analysts at Cornwall Insight believe there will be another ‘modest increase’ in energy prices when the next price cap comes into force at the beginning of 2025. So, from October, for at least 6 months households need to prepare for rising energy prices and higher energy bills.
Quick energy saving tips - Reduce energy use and lower your energy bills
You can implement energy efficiency measures in your home. Simple changes to reduce energy consumption like improving your homes insulation and reducing heat loss is key to keeping energy bills as low as possible.
In addition, simple changes like turning your heating down a couple of degrees (22°C to 20°C) can reduce heating bills by 10-15%.
Switching all your light bulbs over to low energy LED bulbs can reduce the energy used to light your home by up to 80%.
Check out our Energy Saving Guide for lots of other ways to reduce energy, lower bills and save money.
