Latest news with #CraigLowrey
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.
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.
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.' 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. 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. 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. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
23-05-2025
- Business
- Daily Mail
UK energy bills to fall significantly as Ofgem prepares new price cap
Energy regulator Ofgem has announced energy bills will fall by around 7 per cent from July in its latest price cap adjustment today. The typical bill will fall by £129 to £1,720 per year when the regulator's new price cap comes into force. The cap is currently set at around £1,849 for a typical household after three consecutive increases in bills. The drop in rates comes after US President Donald Trump's aggressive tariff plans led to a significant slump in gas and oil prices. The drop is slightly less than the previously forecast 9 per cent fall following an easing of trade tensions in recent weeks. Energy consultants Cornwall Insight said it expects the reduced price cap to be followed by a 'modest drop' in October and another similar dip in January next year. 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's last 6.4 per cent price cap increase. Under-pressure households have also been hit with the biggest increase to water bills since February 1988, alongside steep increases across bills for council tax, mobile and broadband tariffs, and road tax. Bill rises have led to Consumer Prices Index (CPI) inflation jumping to 3.5 per cent in April, up from 2.6 per cent in March and the highest since January 2024. Energy expert Craig Lowrey from Cornwall Insight said: 'The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs. It's a step in the right direction, but it should be taken in context. Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis, and bills remain well above the levels seen at the start of the decade. As such, there remains a risk that energy will remain unaffordable for many.' Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets. The energy price cap was introduced by the Government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use. It does not limit total bills, because householders still pay for the amount of energy they consume. Money saving expert Martin Lewis (pictured) on Wednesday warned Brits they should 'fix energy bills today' in preparation of 'global economic changes' to come. Despite energy prices falling, Martin revealed the cheapest fixed rate is 18 per cent below the current energy price. He warned that people across the UK should secure their energy rates now by switching to a more favourable deal and fixing their rate for the year rather than signing up for a variable rate. He said: 'You might want to sit on the variable but you can save 18 percent instantly by going to a comparison site, your usage and region will depend how much it is, so make sure you are finding the right one for you. If these predictions are right, fixing right now will save you massively compared to what is predicted to come, there could be some global economic change which would mean things could change massively.' He claimed that people tend to wait until prices comes down to fix but explained fixes are based on future predicted prices. He added: 'If you fix right now you will be saving 18 percent tody and you will very likely be undercutting whatever the price cap will be for the next year. Short answer, fix.'
Yahoo
23-05-2025
- Business
- Yahoo
Ofgem confirms energy bills are set to fall by £129 under latest price cap
Ofgem has confirmed household energy bills will fall by around 7 per cent from July in its latest price cap update. The regulator said on Friday that the typical bill is expected to fall by £129 to £1,720 per year when its new price cap comes into force. The price cap, which sets the limit on how much firms can charge customers per unit of energy, is currently at around £1,849 for a typical household after three consecutive increases in bills. It comes after US president Donald Trump's aggressive tariff plans led to a significant slump in gas and oil prices. However, the drop is slightly less than the previously forecast 9 per cent fall following an easing of trade tensions in recent weeks. 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's last 6.4 per cent price cap increase. Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep increases across bills for council tax, mobile and broadband tariffs, as well as road tax. Bill rises have led to Consumer Prices Index (CPI) inflation jumping to 3.5 per cent in April, up from 2.6 per cent in March and the highest since January 2024. On Monday, Craig Lowrey, principal consultant at Cornwall Insight, said: "The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs. "It's a step in the right direction, but it should be taken in context. "Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis, and bills remain well above the levels seen at the start of the decade. "As such, there remains a risk that energy will remain unaffordable for many."
