Latest news with #DrCraigLowrey
Yahoo
01-07-2025
- Business
- Yahoo
£122 boost for British Gas, EDF, EON, Ovo, Octopus customers kicks in today
Energy prices have plummeted today (1st July) for millions of households, as the new price cap comes into effect. Ofgem's new price cap is here, bringing charges down by 7%, though the amount you pay will still be largely determined by the amount of gas and energy you're using. The average household paying by direct debit will see their yearly bill reduced from £1,849 to £1,720. Read more: New PIP rules will see 'millions plunged into hardship' For a typical household, this will reduce their energy bills by £11 a month or £122 a year. This is 10% (£152) per year higher than the price cap set for the same period last year, from 1st July to 30th September 2024 (£1,568). Additionally, analysts at energy consultancy Cornwall Insight have forecast a further drop of 1% to £1,698 a year from this October. Cornwall Insight's principal consultant, Dr Craig Lowrey, said: "Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis. "As such, there remains a risk that energy will remain unaffordable for many. "If prices can go down, they can bounce back up, especially with the unsettled global economic and political landscape we are experiencing. This is not the moment for complacency." He added that the continued growth of domestically produced renewable energy is "a positive step forward". This cause for optimism as it helps protect against global energy price shocks and improves energy security, Mr Lowrey added. He explained: "That progress needs to continue at pace, not just for the net zero transition, but to help build a more stable and secure energy future for all." Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
Daily Mail
23-05-2025
- Business
- Daily Mail
Energy price cap will fall £129 in July, says Ofgem - is it still worth fixing your bills?
The energy regulator confirmed that energy bills will fall by £129 in July. Ofgem said that the price cap will fall to £1,720 over the summer, a 7 per cent - or £129 - fall from the current price cap, which is set at £1,849 for a dual-fuel household. It means households will pay 25.73p/kWh for electricity and 6.33p/kWh for gas, with standing charges of 51.37p and 29.82p, respectively. The price cap is now at a similar level to October 2024's price cap (£1,717) and the first drop since 2024 after volatility sent prices rising. Energy consultancy Cornwall Insight accurately predicted the price cap figure earlier this week. However, it warned that while falling prices are good in the short term, households are still struggling with higher bills. Its upward prediction also indicates how volatile the wholesale market is. It's possible for households to get fixed energy deals that beat the price cap. Dr Craig Lowrey, principal consultant at Cornwall Insight said: 'While it's important to celebrate the small wins, the energy market remains unpredictable. 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. The outlook may be improving, but we're not out of the woods yet, and energy affordability must remain a priority Further ahead, Cornwall Insight expects another drop in October to £1,727 and then again in January 2026. Octopus is 'fairly confident' the October price cap will fall to £1,662, while British Gas says it could be around £1,715. These predictions are not set in stone but they can help you make a decision on what kind of energy deal to pick. Is it a good time to fix your energy bill? Many households have already moved to a fixed energy deal to save money on their monthly bill. Suppliers are still offering competitive deals that undercut the current price cap, but with prices set to fall later this year, are they worth it? Richard Neudegg, director of regulation at Uswitch says: 'The savings from fixed deals are far bigger than this drop. The cheapest fixed deal could save the average household £203* a year compared with the July price cap. 'Millions of homes are already paying cheaper rates than the new July cap, after switching to a fixed deal. The best fixed energy deal on the market is Outfox the Market's 12-month fixed deal, with an average annual bill of £1,517. It represents a £332 saving on the April price cap, and if Cornwall Insight's prediction is correct, would still save households £203. Its 18 month deal, at £1,520, and 24 month deal, at £1,525, also offer savings on both the April and July price caps. Best fixed deals to beat the price cap Supplier Tariff Fix duration Average annual bill Saving vs the April price cap Exit fees Outfox the Market Fix'd Dual May25 12M v5.0 12 month £1,517 £332 £50 per fuel Outfox the Market 18-Month Fix'd Dual May25 v4.0 18 months £1,520 £329 £75 per fuel Outfox the Market 2-year Fix'd Dual May25 v4.0 24 months £1,525 £324 £100 per fuel So Energy So Chestnut One Year - Green 12 months £1,591 £258 £50 per fuel So Energy So Chestnut Two Year - Green 24 months £1,593 £256 £75 per fuel Next Next Direct Fixed 12m v2 12 months £1,597 £252 £50 per fuel Next Next Fixed 12M V54 12 months £1,607 £242 £50 per fuel OVO Energy 1 Year Fixed 15 May 2025 12 months £1,611 £238 £50 per fuel OVO Energy Extended Fixed 15 May 2025 15 months £1,617 £232 £75 per fuel Octopus Energy Octopus 12M Fixed May 2025 v1 12 months £1,625 £224 No exit fees Can you save money on energy bills? Check the best fixed deals When energy prices spiked most households slipped energy price cap tariffs, but it is now possible again to switch to fixed rate energy deals that can save you money. This is Money's recommended partner uSwitch lets you compare the best energy deals for you, based on your home and gas and electricity costs. > Compare the best energy deals with uSwitch* By entering your address and energy usage, you can search for energy deals that can cut your costs and suit how you live. Switching energy provider can also help the planet, if you move to one of the green deals offering electricity from renewable sources and more environmentally-friendly gas. *
Sky News
19-05-2025
- Business
- Sky News
Energy bills set for series of falls as price cap due to be lowered, says forecaster
Why you can trust Sky News Energy bills are set to fall from July and will continue to drop in the autumn and winter, a forecaster has said. Households will be charged £129 less for a typical annual bill from July as the energy price cap is forecast to fall, according to energy consultants Cornwall Insight. From July, an average dual fuel bill will be £1,720 a year, 7% below the current price cap of £1,849 a year. The price cap limits the cost per unit of energy and is revised every three months by the energy regulator Ofgem. The official announcement from Ofgem will be made on Friday. Bills had already been made more expensive for three three-month periods, or quarters, in a row, in October, January, and April, as wholesale gas prices rose and European stores of the fossil fuel were depleted due to cold weather. Electricity prices are tied to gas prices. The UK is also heavily reliant on gas for home heating and uses a significant amount for electricity generation. Drops when the cap is next changed in October and January will be "modest", Cornwall Insight said. Price falls are not a certainty, however, as weather patterns, gas storage rules, the war in Ukraine, and tariffs could all change pricing. 4:42 Bills still high since Ukraine war Energy costs have remained elevated following Russia's full-scale invasion of Ukraine, and bills are still "well above" the levels seen at the start of the decade, said Cornwall Insight's principal consultant, Dr Craig Lowrey. "Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis. "As such, there remains a risk that energy will remain unaffordable for many," he said. "If prices can go down, they can bounce back up, especially with the unsettled global economic and political landscape we are experiencing. This is not the moment for complacency." The government was called on by Mr Lowrey to explore options such as social tariffs, where vulnerable customers could pay less. Proposals, including zonal pricing, which would see different regions of the country pay different rates, based on local supply and demand levels, are important but must be balanced with the urgent affordability crisis people are facing now, he said. The continued growth of domestically produced renewable energy is "a positive step forward" and a cause for optimism as it helps protect against global energy price shocks and improves energy security, Mr Lowrey added.
Daily Mail
19-05-2025
- Business
- Daily Mail
Energy price cap will fall £129 in July as expert forecaster revises prediction
A leading energy forecaster has revised its prediction for the July Ofgem-set price cap thanks to changes in the wholesale market. The price cap will fall to £1,720 in July according to energy consultancy Cornwall Insight in its final forecast. That would represent a 7 per cent - or £129 - fall from the current price cap, which is set at £1,849 per year for a dual-fuel household. It means households would pay 25.61p/kWh for electricity and 6.2p/kWh for gas, with standing charges of 54p and 33p, respectively. Its forecast has increased since its prediction last month, which it said reflected increases in the energy wholesale markets and updated assessments of policy and network costs. Cornwall Insight warns that while falling prices are good in the short term, households are still struggling with higher bills. Its upward prediction also indicates how volatile the wholesale market is. 'If prices can go down, they can bounce back up, especially with the unsettled global economic and political landscape we are experiencing,' says Dr Craig Lowrey, principal consultant at Cornwall Insight. 'This is not the moment for complacency. The Government must continue to explore targeted support… 'While there is understandably a great deal of focus on widescale market reforms such as the introduction of zonal pricing, we must recognise that such changes will take years to come into effect.' Energy suppliers also publish their predictions for the energy price cap. Octopus Energy is confident the July price cap will be £1,731, while British Gas anticipates it will fall to £1,700. Further ahead, Cornwall Insight expects another drop in October and then again in January 2026. Octopus is 'fairly confident' the October price cap will fall to £1,662, while British Gas says it could be around £1,715. Cornwall Insight says a 'range of factors could shift these forecasts, including changing weather patterns, the relaxation of EU gas storage rules, ongoing debates around US tariffs and the continuing impact of the war in Ukraine.' These predictions are not set in stone but they can help you make a decision on what kind of energy deal to pick. Is it a good time to fix your energy bill? Many households have already moved to a fixed energy deal to save money on their monthly bill. Suppliers are still offering competitive deals that undercut the current price cap, but with prices set to fall later this year, are they worth it? Richard Neudegg, director of regulation at Uswitch says: 'The expectation of a drop in July's price cap is welcome news. But any household still on the standard variable tariff should ditch it well before then. 'There are a number of fixed deals on the market already cheaper than the predicted July rates, and we're seeing the biggest savings versus the price cap since autumn 2020. 'The average household on a standard tariff could save around £332 a year by switching compared with the current price cap, which also beats the latest July prediction by around £200 per year.' The best deal on the market is Outfox the Market's 12-month fixed deal, with an average annual bill of £1,517. It represents a £332 saving on the April price cap, and if Cornwall Insight's prediction is correct, would still save households £203. Its 18 month deal, at £1,520, and 24 month deal, at £1,525, also offer savings on both the April and July price caps. Best fixed deals to beat the price cap Supplier Tariff Fix duration Average annual bill Saving vs the April price cap Exit fees Outfox the Market Fix'd Dual May25 12M v5.0 12 month £1,517 £332 £50 per fuel Outfox the Market 18-Month Fix'd Dual May25 v4.0 18 months £1,520 £329 £75 per fuel Outfox the Market 2-year Fix'd Dual May25 v4.0 24 months £1,525 £324 £100 per fuel So Energy So Chestnut One Year - Green 12 months £1,591 £258 £50 per fuel So Energy So Chestnut Two Year - Green 24 months £1,593 £256 £75 per fuel Next Next Direct Fixed 12m v2 12 months £1,597 £252 £50 per fuel Next Next Fixed 12M V54 12 months £1,607 £242 £50 per fuel OVO Energy 1 Year Fixed 15 May 2025 12 months £1,611 £238 £50 per fuel OVO Energy Extended Fixed 15 May 2025 15 months £1,617 £232 £75 per fuel Octopus Energy Octopus 12M Fixed May 2025 v1 12 months £1,625 £224 No exit fees Can you save money on energy bills? Check the best fixed deals When energy prices spiked most households slipped energy price cap tariffs, but it is now possible again to switch to fixed rate energy deals that can save you money. This is Money's recommended partner uSwitch lets you compare the best energy deals for you, based on your home and gas and electricity costs. > Compare the best energy deals with uSwitch* By entering your address and energy usage, you can search for energy deals that can cut your costs and suit how you live. Switching energy provider can also help the planet, if you move to one of the green deals offering electricity from renewable sources and more environmentally-friendly gas. > Check the best fixed rate energy deals with uSwitch and This is Money *
Yahoo
19-05-2025
- Business
- Yahoo
Annual energy bills predicted to fall £129 in July
Domestic energy prices are forecast to fall in July, the first drop in regulator Ofgem's price cap for a year. The bill of a household using a typical amount of gas and electricity will fall by £129 a year, a drop of nearly 7%, analysts at the consultancy Cornwall Insight have predicted. The fall would mean a typical annual bill for a dual-fuel customer paying by direct debit would cost £1,720, down from the current level of £1,849. The price cap is based on the cost of each unit of energy, not the total bill - so if you use more, you pay more. The energy price cap covers around 22 million households in England, Wales and Scotland and is set every three months by Ofgem. The cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit. "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," said Dr Craig Lowrey, principal consultant at Cornwall Insight. He added that, while it was "a step in the right direction", prices were not falling enough for those households still struggling with cost of living, 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," he said. Last month, Cornwall Insight had predicted a larger fall in the cap - to £1,683 - and it said the new forecast partly reflected higher wholesale energy prices. It predicted the energy price cap would fall again in October, followed by another drop in January 2026.
