Latest news with #PriceCap
North Wales Live
24-05-2025
- Business
- North Wales Live
Martin Lewis urges people to take action as he says price cap is 'nothing to shout home about'
Martin Lewis has expressed a lukewarm response to the recent announcement by Ofgem regarding the new price cap, stating it's "welcome" but "nothing to shout home about". On Friday, Ofgem confirmed that household energy bills will decrease by 7% from July, as the regulator's new price cap takes effect. As a result of the updated price cap, the average energy bill will reduce by £129 to £1,720 annually. This update also signifies that energy bills will be 28% lower, or £660 less, compared to the peak of the energy crisis in 2023. However, Martin Lewis maintains that while the revised price cap is "welcome", it's not something to "shout home about", reports the Manchester Evening News. Writing on X - formerly Twitter - Martin Lewis said: "Today's announcement that the Price Cap is to fall by 7%, is welcome, but nothing to shout home about. All this really does is reverse April's rise so it's back to roughly the cost at the start of the year. "Crucially energy bills this July will still be 10% higher than at the same time last year." He added: "In simple terms it means for every £100 you pay for energy now, in July, August and September you will typically pay roughly £93.00. "As the cut is on both unit rate and standing charges, this time the impact is pretty uniform for lower and higher users, though those with gas will typically see more of a fall, as its price is falling more than electricity." From this, Lewis described the update as a "pants cap" claiming that some of the cheapest fixes on the market are 18% below the current price cap. He claimed the cap was only ever meant to be a back-stop tariff for those who were unable to switch to a different rate and said that during the energy crisis it became a "regulated price". He then urged the majority of people who are currently on the cap to search the market for a cheaper fix. He wrote: "For all but those on pre-payment meters, where sadly there's little choice, I'd urge people to get off the Cap, use a whole-of-market comparison site, like to find their cheapest fix. "That will instantly cut bills, without any need to wait until July, and if analysts' current Price Cap predictions prove true, would substantially undercut the Cap in every period for the next year. "Our recent analysis shows, that at every point over the last twelve months, grabbing the cheapest fix on the market would've saved you substantially over the Price Cap." But he did caution anyone planning to do a price comparison now to be wary of overinflated figures. This is because comparison sites will show how much can be saved in comparison to the current price cap, rather than the one coming in July. He said: "That means savings will be exaggerated by 7%, and you need to factor that into your calculations."
South Wales Argus
23-05-2025
- Business
- South Wales Argus
Ofgem Energy Price Cap: Energy bills to fall in July 2025
The decrease means that a typical household in England, Scotland and Wales will now pay £1,720 on average for energy, down from £1,849under the current price cap. Energy regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets. It's worth noting that the cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will always pay more. While a saving is welcome news, average energy bills continue to be 10% higher (almost £150) than this time last year, and 65% (almost £700) above winter 2020/21 levels and a third higher (around £450) than pre-Ukraine invasion. Simon Francis, coordinator of the End Fuel Poverty Coalition, says: 'The Government's u-turn on the Winter Fuel Payment is a clear sign it knows people are struggling with energy bills – but sticking-plaster solutions won't keep people warm next winter or the one after that. 'While bills may fall slightly in July, they're still significantly higher than before the energy crisis and remain tied to the unpredictable cost of fossil fuels. Without urgent reform and real investment, millions will continue to face unaffordable bills and cold homes. 'The Warm Homes Plan offers a long-term fix: lower bills, warmer homes, and greater energy security. But this essential plan is now under threat. If Ministers walk away from it, they are effectively condemning households to years more of hardship. 'Short-term relief must not be used as an excuse for long-term neglect. The Government must fully fund the Warm Homes Plan and deliver the reforms needed to bring down bills for good.' Before the announcement, consultancy BFY Group predicted that the cap would fall by approximately £1,715 – a £134 decrease from the current April cap. Matt Turner-Tait, Senior Manager at BFY Group, says: 'This shows a decrease of about £134 from the current level of £1,849, set in April. "This reflects recent declines in wholesale gas and electricity prices and will provide some short-term relief for households on standard variable tariffs. While energy prices typically dip in summer due to reduced demand, market signals indicate that prices could stay at current levels through the winter as well, challenging expectations of the usual seasonal rebound. "Adjustments to the amount suppliers are allowed to recover for operating costs could reduce bills by up to £15 per year, but these savings could be offset by the rising bad debt among suppliers and other pressures, such as volatile wholesale markets, the rising costs of decarbonisation, inflation-driven operational expenses and regulatory compliance. More energy customers have been switching to fixed tariffs, which are always cheaper than the Price Cap, and are currently significantly so - by around £250 to £300 for a typical customer. Matt says: "While the gap between fixed deals and the capped rate may narrow as the Price Cap falls, fixed tariffs are still expected to offer savings in the near term."
North Wales Chronicle
23-05-2025
- Business
- North Wales Chronicle
Ofgem Energy Price Cap: Energy bills to fall in July 2025
The decrease means that a typical household in England, Scotland and Wales will now pay £1,720 on average for energy, down from £1,849under the current price cap. Energy regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets. It's worth noting that the cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will always pay more. While a saving is welcome news, average energy bills continue to be 10% higher (almost £150) than this time last year, and 65% (almost £700) above winter 2020/21 levels and a third higher (around £450) than pre-Ukraine invasion. Simon Francis, coordinator of the End Fuel Poverty Coalition, says: 'The Government's u-turn on the Winter Fuel Payment is a clear sign it knows people are struggling with energy bills – but sticking-plaster solutions won't keep people warm next winter or the one after that. 'While bills may fall slightly in July, they're still significantly higher than before the energy crisis and remain tied to the unpredictable cost of fossil fuels. Without urgent reform and real investment, millions will continue to face unaffordable bills and cold homes. 'The Warm Homes Plan offers a long-term fix: lower bills, warmer homes, and greater energy security. But this essential plan is now under threat. If Ministers walk away from it, they are effectively condemning households to years more of hardship. 'Short-term relief must not be used as an excuse for long-term neglect. The Government must fully fund the Warm Homes Plan and deliver the reforms needed to bring down bills for good.' Before the announcement, consultancy BFY Group predicted that the cap would fall by approximately £1,715 – a £134 decrease from the current April cap. Matt Turner-Tait, Senior Manager at BFY Group, says: 'This shows a decrease of about £134 from the current level of £1,849, set in April. "This reflects recent declines in wholesale gas and electricity prices and will provide some short-term relief for households on standard variable tariffs. While energy prices typically dip in summer due to reduced demand, market signals indicate that prices could stay at current levels through the winter as well, challenging expectations of the usual seasonal rebound. "Adjustments to the amount suppliers are allowed to recover for operating costs could reduce bills by up to £15 per year, but these savings could be offset by the rising bad debt among suppliers and other pressures, such as volatile wholesale markets, the rising costs of decarbonisation, inflation-driven operational expenses and regulatory compliance. More energy customers have been switching to fixed tariffs, which are always cheaper than the Price Cap, and are currently significantly so - by around £250 to £300 for a typical customer. Matt says: "While the gap between fixed deals and the capped rate may narrow as the Price Cap falls, fixed tariffs are still expected to offer savings in the near term."
Glasgow Times
23-05-2025
- Business
- Glasgow Times
Ofgem Energy Price Cap: Energy bills to fall in July 2025
The decrease means that a typical household in England, Scotland and Wales will now pay £1,720 on average for energy, down from £1,849under the current price cap. Energy regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets. It's worth noting that the cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will always pay more. While a saving is welcome news, average energy bills continue to be 10% higher (almost £150) than this time last year, and 65% (almost £700) above winter 2020/21 levels and a third higher (around £450) than pre-Ukraine invasion. Simon Francis, coordinator of the End Fuel Poverty Coalition, says: 'The Government's u-turn on the Winter Fuel Payment is a clear sign it knows people are struggling with energy bills – but sticking-plaster solutions won't keep people warm next winter or the one after that. 'While bills may fall slightly in July, they're still significantly higher than before the energy crisis and remain tied to the unpredictable cost of fossil fuels. Without urgent reform and real investment, millions will continue to face unaffordable bills and cold homes. 'The Warm Homes Plan offers a long-term fix: lower bills, warmer homes, and greater energy security. But this essential plan is now under threat. If Ministers walk away from it, they are effectively condemning households to years more of hardship. 'Short-term relief must not be used as an excuse for long-term neglect. The Government must fully fund the Warm Homes Plan and deliver the reforms needed to bring down bills for good.' Before the announcement, consultancy BFY Group predicted that the cap would fall by approximately £1,715 – a £134 decrease from the current April cap. Matt Turner-Tait, Senior Manager at BFY Group, says: 'This shows a decrease of about £134 from the current level of £1,849, set in April. "This reflects recent declines in wholesale gas and electricity prices and will provide some short-term relief for households on standard variable tariffs. While energy prices typically dip in summer due to reduced demand, market signals indicate that prices could stay at current levels through the winter as well, challenging expectations of the usual seasonal rebound. "Adjustments to the amount suppliers are allowed to recover for operating costs could reduce bills by up to £15 per year, but these savings could be offset by the rising bad debt among suppliers and other pressures, such as volatile wholesale markets, the rising costs of decarbonisation, inflation-driven operational expenses and regulatory compliance. More energy customers have been switching to fixed tariffs, which are always cheaper than the Price Cap, and are currently significantly so - by around £250 to £300 for a typical customer. Matt says: "While the gap between fixed deals and the capped rate may narrow as the Price Cap falls, fixed tariffs are still expected to offer savings in the near term."
Rhyl Journal
23-05-2025
- Business
- Rhyl Journal
Ofgem Energy Price Cap: Energy bills to fall in July 2025
The decrease means that a typical household in England, Scotland and Wales will now pay £1,720 on average for energy, down from £1,849under the current price cap. Energy regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets. It's worth noting that the cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will always pay more. While a saving is welcome news, average energy bills continue to be 10% higher (almost £150) than this time last year, and 65% (almost £700) above winter 2020/21 levels and a third higher (around £450) than pre-Ukraine invasion. Simon Francis, coordinator of the End Fuel Poverty Coalition, says: 'The Government's u-turn on the Winter Fuel Payment is a clear sign it knows people are struggling with energy bills – but sticking-plaster solutions won't keep people warm next winter or the one after that. 'While bills may fall slightly in July, they're still significantly higher than before the energy crisis and remain tied to the unpredictable cost of fossil fuels. Without urgent reform and real investment, millions will continue to face unaffordable bills and cold homes. 'The Warm Homes Plan offers a long-term fix: lower bills, warmer homes, and greater energy security. But this essential plan is now under threat. If Ministers walk away from it, they are effectively condemning households to years more of hardship. 'Short-term relief must not be used as an excuse for long-term neglect. The Government must fully fund the Warm Homes Plan and deliver the reforms needed to bring down bills for good.' Before the announcement, consultancy BFY Group predicted that the cap would fall by approximately £1,715 – a £134 decrease from the current April cap. Matt Turner-Tait, Senior Manager at BFY Group, says: 'This shows a decrease of about £134 from the current level of £1,849, set in April. "This reflects recent declines in wholesale gas and electricity prices and will provide some short-term relief for households on standard variable tariffs. While energy prices typically dip in summer due to reduced demand, market signals indicate that prices could stay at current levels through the winter as well, challenging expectations of the usual seasonal rebound. "Adjustments to the amount suppliers are allowed to recover for operating costs could reduce bills by up to £15 per year, but these savings could be offset by the rising bad debt among suppliers and other pressures, such as volatile wholesale markets, the rising costs of decarbonisation, inflation-driven operational expenses and regulatory compliance. More energy customers have been switching to fixed tariffs, which are always cheaper than the Price Cap, and are currently significantly so - by around £250 to £300 for a typical customer. Matt says: "While the gap between fixed deals and the capped rate may narrow as the Price Cap falls, fixed tariffs are still expected to offer savings in the near term."
