Latest news with #CornwallInsight
Daily Mirror
28-05-2025
- Business
- Daily Mirror
Octopus urges customers to act before July to save money on energy bills
It's important to note that the price cap is not actually a cap on energy bills, it is instead a cap on how much suppliers can charge you for each unit of energy you use. This means the more energy you use, the higher your bill will be Octopus has urged its customers to act ahead of Ofgem's price cap change in July. Last week, the energy regulator announced that its price cap would be dropping by £129 - or 7% - from July 1. Currently, the price cap sits at £1,849 for the typical direct debit customers. From July 1, this will drop to £1,720 a year. It's important to note that the price cap is not actually a cap on energy bills, it is instead a cap on how much suppliers can charge you for each unit of energy you use. This means the more energy you use, the higher your bill will be. The price cap is the lowest it's been since October 2024, and although it has gone down, energy prices are still much more expensive they they used to be. For example, last July, the price cap sat at £1,568 a year. Although prices have come down over the last two years, the energy market is volatile and incredibly susceptible to global politics and conflicts. This means there isn't much stability with prices. Last week, energy analysts at Cornwall Insight published their latest prediction for Ofgem's price cap. The group - which has accurately predicted price cap movements in recent years - expected a "modest drop" in the price cap this October, followed by another in January 2026. However, as mentioned before, it says a range of factors could shift these forecasts, including changing weather patterns, the relaxation of EU gas storage rules, US tariffs and the continuing war in Ukraine. This means if you aren't on a fixed rate deal and are on your provider's "standard variable rate" then you could see prices rise again. The price cap changes every three months, so the new level will be in place until September 30, when it will then be updated again. Energy provider Octopus has urged its customers to consider switching to a fixed-rate deal. In an email, it said locking into a fixed tariff ahead of the price cap change in July would be more beneficial and result in bigger savings in the long-term. The email said: 'From July 1st - September 30th 2025, the energy price cap for a typical home using gas and electricity and paying by Direct Debit will be £1,720 per year. This is 7% less than the April price cap, and will knock about £11 off monthly bills. 'However, even though variable rates have dropped, we think it's still worth locking in your prices on a fixed tariff. These currently offer our cheapest rates, meaning you could save more in the long run. 'This could change in the future, so check out our price cap predictions page for a sense of how we think prices could fluctuate over the year. Just bear in mind there are no guarantees.' A fixed rate tariff locks prices for a set period of time - usually this is a minimum of 12 months. However, it can be even longer and up to 24 months in some cases. As you are locked in, you will not be affected by any changes in the price cap throughout this period. This means you know exactly how much you'll pay per unit of gas and electricity you use during this set time.
Business Mayor
25-05-2025
- Business
- Business Mayor
UK household energy bills to fall after Ofgem lowers price cap 7%
Stay informed with free updates Simply sign up to the UK energy myFT Digest — delivered directly to your inbox. Britain's household energy bills are set to fall in the summer after regulator Ofgem lowered the price cap by 7 per cent, in a boost to Sir Keir Starmer's government as it tries to tackle the high cost of living. Ofgem on Friday set the price cap for July to September at a level that would mean a typical household pays £1,720 per year, down from £1,849 at present, following a fall in wholesale gas prices. It is the first reduction in the cap since July 2024 and will provide some relief for households struggling to pay energy bills. Utility bills helped drive inflation to a 15-month high of 3.5 per cent in April, according to figures released this week, dampening expectations of interest rate cuts from the Bank of England. Ofgem's move comes as the government this week said it would backtrack on cuts to winter fuel payments for pensioners, following a public backlash. Despite the cut in the cap, bills will be 9 per cent higher than last summer, said Ofgem, and remain hundreds of pounds a year higher than before the energy crisis that started in late 2021. Craig Lowrey, principal consultant at market analysts Cornwall Insight, said the reduction in the cap was a 'welcome development' but there remained a risk that 'energy will remain unaffordable for many'. He urged the government to 'continue to explore targeted support, including social tariffs, to ensure those most in need are not left behind as the market evolves'. The price cap sets a limit on how much energy companies can charge homes on default tariffs per unit of gas and electricity consumed. It is reset every three months to reflect changes in wholesale prices. Gas heats the vast majority of Britain's homes and is used to generate more than one-third of its electricity, meaning any changes in wholesale prices have an impact. Ed Miliband, the UK's energy secretary, welcomed the reduction in the cap, but said prices would only come down 'for good' through the government's plan to build more renewable power capacity. The UK imports nearly 90 per cent of its gas from Norway and the US, according to official statistics. Cornwall Insight said wholesale gas prices had fallen in recent months, partly due to mild temperatures and the prospect of a slowing demand in the US. It expects Ofgem will set the price cap at a similar level for the final three months, a period when households typically consume more energy. On a per unit basis, the cap for July to September will be 25.7 pence per kilowatt-hour for electricity with a daily standing charge of 51.4 pence. For gas, the cap will be 6.3 pence per kWh with a daily standing charge of 29.8 pence. That compares with the current cap of 27.03 pence per kWh for electricity with a daily standing charge of 53.80 pence, and 6.99 pence per kWh for gas with a daily standing charge of 32.67 pence.
South Wales Argus
24-05-2025
- Business
- South Wales Argus
British Gas offering customers half-price electricity
Customers are rewarded for shifting electricity usage to times when demand is lower or when more renewable energy is available on the grid under the scheme. The offer, which launched in 202,3 has helped customers save a combined total of nearly £25 million and 1606 tonnes of carbon emissions and collectively shifted 28,619 MWH so far. We're aware that a few fake accounts are responding to comments pretending to be British Gas customer service – they're not. We'll only ever contact you from our verified account or our British Gas Help account, so if it's not one of these then it's not us. Please don't reply. — British Gas (@BritishGas) November 5, 2024 When it is windy or sunny and lots of renewable energy is available customers get two hours of electricity half price. Energy is also cheaper every Sunday. Between 11am and 4pm on the 25th and 26th May PeakSave customers will receive half-price electricity. The bank holiday weekend offer will be in celebration of the 1 millionth household to sign up to the scheme aimed at reducing energy bills and efficient energy use. Catherine O'Kelly, Managing Director of British Gas, said: "We're proud to have supported a million customers through our PeakSave scheme, helping them make simple yet impactful changes to how they use energy. 'By shifting energy usage to lower-demand periods, households can not only reduce their bills but also support a more flexible, greener energy future. This extended Bank Holiday offer is our way of saying thank you and encouraging even more people to take part.' Recommended reading: The price reduction comes as consumers face the burden of rising living costs. However, household energy bills have been projected to decrease by about 7 per cent this July. Industry analysts Cornwall Insight predict the typical annual household energy bill will fall by £129, settling at around £1,720 when Ofgem's revised price cap takes effect.
Daily Record
23-05-2025
- Business
- Daily Record
Scots urged to shop around for cheaper energy deals to save up to £200 a year
Household bills will drop from July when a new price cap kicks-in. Scots are being urged to shop around for cheaper energy deals despite household bills set to drop by £129 a year. Market regulator Ofgem said the public could save as much as £200 a year on gas and electricity if they spent time comparing energy providers for the best offers. A new price cap announced yesterday – which sets the limit on how much firms can charge customers per unit of energy – means typical household bills will drop by £129 to £1,720 per year. It means average bills are now £660 lower than at the height of the energy crisis at the start of 2023 when the the energy price guarantee was implemented. The move is a boost for Keir Starmer after the UK Government pledged to promised to cut annual energy bills by £300 a year by the end of the decade. Industry analysts Cornwall Insight said the fall followed Donald Trump's aggressive tariff plans leading to a significant slump in gas and oil prices. Tim Jarvis, director general of markets at Ofgem, said: "A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible. 'We're also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.' The price cap does not limit total bills because householders still pay for the amount of energy they consume. The news of a fall in energy costs will come as a relief for households, who suffered through an 'awful April' of bill rises, including Ofgem last 6.4 per cent price cap increase. Ed Miliband, the UK Energy Secretary, said the seven per cent fall in household energy bills from July is welcome but stressed that the Government will continue to work towards clean energy to get off the 'rollercoaster of fossil fuel markets'. 'This fall in energy bills is welcome news for families across the country and will mean that working people keep more of their money in the coming months," he said. "However, we know that it is only through our mission for clean, homegrown power that we can get off the rollercoaster of fossil fuel markets controlled by dictators and petrostates – and give families and businesses energy security and bring down bills for good. "As we take back control, we are doing everything we can to support people – from consulting on expanding the £150 warm home discount to around six million households next winter, to upgrading thousands of homes so they are warmer and cost." Dave Doogan, SNP energy spokesman, said: "Even with today's news, UK energy bills will still be £152 higher than when the Labour Party came to office - despite promising voters they would cut bills by £300. "While any slight reversal of the recent increases is welcome, the Labour Party still needs to reduce bills by £452 to meet its election pledge - and there are warnings that UK energy prices could rise again this winter."
Yahoo
23-05-2025
- Business
- Yahoo
Household energy bills to fall by £129 as price cap drops
Energy bills are to fall by £129 from July, regulators have announced, easing pressure on British households after three consecutive increases. Ofgem, the energy regulator, has set its price cap – the amount suppliers are allowed to charge their customers – at £1,720 per year, falling from its current cap of £1,849. It follows three consecutive increases in bills that have heaped pressure on consumers and driven the rate of inflation up. Ofgem changes its price cap every three months. Energy industry analysts at Cornwall Insight this week predicted that another 'modest drop' would follow in October, with another to come in January. The fall in household's bills comes after Donald Trump's trade war hammered gas and oil prices as uncertainty over tariffs weighed on prices. At the same time, Opec cartel members have been pushing through oil production increases, adding further downwards pressure. Dr Craig Lowrey, of Cornwall Insight, said on Friday: 'This fall in the energy price cap is undoubtedly welcome news for households, offering a degree of relief at a time when many are grappling with high living costs, and rising inflation. 'Lower prices in the warmer months are helpful, but the real benefit could come in October. With energy use typically rising as we head into winter, any drop in bills later in the year would be especially valuable for families trying to manage the high costs in the lead up to the Christmas period.' However, he warned that the energy market 'remains unpredictable'. He said: 'We know recent declines in wholesale prices have helped bring the cap down, but global events - from geopolitical negotiations to shifts in trade and weather - can quickly reverse that trend. 'Plus, even with the cap coming down, bills are still higher than what we used to consider 'normal', so support is still very much needed.' It comes as worries are mounting over the amount of historical debt racked up by British households as prices soared in recent years. The total amount of debt and arrears owed to suppliers hit £3.8bn at the end of 2024. Tim Jarvis, the director general of markets at Ofgem, said on Friday that the regulator was looking at ways it could address historical debts. He told BBC Radio 4's Today Programme: 'We have to get on top of that number. It has been increasing significantly over the last year or two, as people have been struggling with their bills. 'And it's a problem, not just for those people who are in debt... and the stress that it causes, but it's something that we all pay for in our prices.' Sharon Graham, the general secretary of Unite, said: 'Ofgem has lowered its cap, but our bills are still sky high and nobody has any faith left in this regulator, which allows multinational companies to extract obscene profits from our energy system. 'We urgently need to reverse the market madness and address the real causes of the lingering energy crisis.' That bills are set to fall – and are expected to fall further over the months to come – will come as a relief to the Prime Minister, who pledged to ease the burden of energy bills before he was elected last year. However, they are still 10pc higher than they were when Labour took office. Sir Keir Starmer this week said he would review Labour's clampdown on winter fuel payments, in a major u-turn on what has been one of his government's most unpopular policies. Adam Scorer, chief executive of National Energy Action, said household bills still remained 'punishingly high'. He said: 'Four years of extraordinarily high energy bills has taken its toll. We hear heart-breaking cases every day.' That's all from us on the energy price cap this morning. Read on for more business news and analysis. This chart shows the extent of households' energy debt and arrears up to the end of last year. Ofgem's director general Tim Jarvis said this morning that the regulator is looking at ways to tackle the issue. Here's Caroline Abrahams, of the charity Age UK: 'This fall in energy prices will not undo the hardship many older people have already endured and may have to endure again this winter. Despite relatively mild weather, last winter was especially tough for pensioners who lost their Winter Fuel Payment. Pensioners, many of whom live on fixed incomes, have faced impossible choices between heating their homes and covering other essential expenses.' 'Without intervention, we anticipate similar, if not worse, levels of hardship next winter. There is an urgent need for the government to introduce additional targeted support measures before the winter hits. – which may feel a long way off but is really only six months away.' Soaring energy bills have plunged swathes of households into debt in recent years, with the total amount owed to suppliers surging to almost £4bn, according to Ofgem data. Richard Lane, of debt charity StepChange, said: 'This is the first fall in the energy price cap we've seen for a year, but it's fair to say it'll have a minimal impact, both on the households already struggling to meet these costs and for those already deep in the red with their energy bills – many of whom have been hit hard by other bill rises in April.' The benchmark index was up 0.3pc in early trading as Ofgem lowered its price cap for households and government data showed an unexpected jump in retail sales. The mid-cap FTSE 250 index climbed 0.2pc after markets opened. During his election campaign last year, Sir Keir Starmer pledged to bring down customers' bills after they soared to record highs, so the news on Friday that households can expect them to drop in July after months of pain will come as a relief to the Prime Minister. However, it is likely to remain a critical issue over the months to come because bills are still more expensive than they were at the time of Labour's election victory. Danni Hewson, head of financial analysis at investment firm AJ Bell, said: 'The 7pc drop wipes out April's increase, but the cap is still higher than it was during the same period last year and there's no sign of energy prices falling back to historic norms. It comes after Sir Keir this week said he would review Labour's clampdown on winter fuel payments, in a major u-turn on what has been one of his government's most unpopular policies. Joanna Elsom, chief executive of Independent Age, said: 'We heard dreadful accounts of people going to bed in hats and coats, limiting themselves to just one meal a day to save money, and having to visit public places to stay warm. 'We urge the UK Government to act quickly and provide clarity on who will be eligible for the next payment.' Here's Sharon Graham, the general secretary of Unite, the union. 'Ofgem has lowered its cap, but our bills are still sky high and nobody has any faith left in this regulator, which allows multinational companies to extract obscene profits from our energy system. 'We urgently need to reverse the market madness and address the real causes of the lingering energy crisis.' The energy secretary, Ed Milband, welcomed news of the price cap falling, arguing it would mean 'that working people keep more of their money in the coming months'. 'We know that it is only through our mission for clean home-grown power that we can get off the rollercoaster of fossil fuel markets controlled by dictators and petrostates – and give families and businesses energy security and bring down bills for good. 'As we take back control, we are doing everything we can to support people – from consulting on expanding the £150 Warm Home Discount to around six million households next winter, to upgrading thousands of homes so they are warmer and cost less to heat, to reforming our energy market so consumers are better protected.' Simon Virley, head of energy and natural resources at KPMG, said the falling price of gas could make it 'harder to argue' for switching to renewables. He said:'Today's decrease in the energy price cap is the result of falling gas prices and will bring costs back to where they were at the end of last year. This is good news for households still struggling with the cost of living. 'With upward pressures on the cost of renewables, due to supply chain and other constraints, if gas prices continue to fall, it will be harder to argue that switching from gas to renewables will help bring energy bills down in the near term.' Here's Dhara Vyas, chief executive of Energy UK, a trade body which represents the energy industry. 'Today's announcement again underlines how energy bills are driven by the country's dependence on gas and a wholesale price over which we have little control - and which has risen more often than fallen in recent times. 'Producing more of our own clean power is the right way to stabilise bills over the long term but in the meantime, the industry also wants to work with Government, Ofgem, and charities on ways to ease the burden on customers, in addition to the support already provided by suppliers.' Tim Jarvis told The Today Programme Ofgem is looking at ways it can help households with historical debt that they have built up as prices soared in recent years. Around £4bn is currently owed to energy suppliers in arrears. Mr Jarvis said: 'We have to get on top of that number. It has been increasing significantly over the last year or two, as people have been struggling with their bills. 'And it's a problem, not just for those people who are in debt... and the stress that it causes, but it's something that we all pay for in our prices.' Ofgem's director general for markets, Tim Jarvis, told The Today Programme this morning: 'We do recognise that many people are still struggling, and there's a lot of volatility that the changes in prices as a result of these changes in international markets. 'It does make this market difficult. So I would encourage people to try and try and switch and protect themselves from these fluctuations.' He insisted the regulator was doing what it could to help ease pressure on British households, adding that customers struggling to meet their bills should open talks with their suppliers. 'Often it's the last thing [people] want to do but talk to your supplier, because there is help available. They can make sure that you are paying the cheapest amount.' Tessa Khan, founder of fuel poverty charity Uplift, said: 'Any reduction in household energy bills is a massive relief for millions across the country but is sadly likely to be short lived. What racks up UK energy bills is our high dependency on exorbitant gas prices. 'If we follow the money we see there are vested interests who want us hooked on gas and the reality is we have no control whatsoever over its price. While some companies and individuals profit from that reliance, the rest of us are faced with this grinding price cap seesaw.' Household energy bills are poised to fall after Ofgem reduced its price cap by 7pc. Trump's $4.5 trillion tax cuts risk making bond markets 'puke' | America's mountainous debts are becoming too big for even the most daring investors to ignore Labour's tax raid to trap 1.5bn barrels of oil and gas under North Sea | Windfall tax has doubled rate of decline in production, forecast shows The true cost of Reeves's capitulation on public sector pay | The decision to back bumper handouts places fresh demands on the public purse – and taxpayers' pockets Man City sheikh was 'shadow owner' of hospital tainted by fraud, claims EY | Emirati royal had links to businessmen accused of stealing billions from NMC Health, court told Ambrose Evans-Pritchard: Spain's blackout story is disintegrating | It is the socialist government, not green energy, that ought to be on trial in this fiasco On Wall Street, the Dow Jones Industrial Average rose 0.4pc, to 42,037.60, the S&P 500 rose 0.5pc, to 5,873.50, and the Nasdaq Composite rose 0.9pc, to 19,049.21. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.540pc from 4.588pc a day earlier. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
