Latest news with #PriceCap
Sky News
a day ago
- Business
- Sky News
Energy bills expected to rise from October
Energy bills are now expected to rise in autumn, a reversal from the previously anticipated price drop, a prominent forecaster has said. Households will be charged £17 more for a typical annual bill from October as the energy price cap is due to rise, according to consultants Cornwall Insight. In roughly six weeks, an average dual fuel bill will be £1,737 a year, Cornwall Insights predicted, 1% above the current price cap of £1,720 a year. The price cap limits the cost per unit of energy and is revised every three months by the energy regulator Ofgem. Bills had previously been forecast by the consultants to fall in October. Such an increase had not been anticipated until now. Why are bills getting more expensive? Charges are predicted to be introduced from October to fund government policies. Measures such as the expansion of the warm home discount, announced in June, will add roughly £15 to an average monthly bill. The discount will provide £150 in support to 2.7 million extra people this year, bringing the total number of beneficiaries to 6 million. Volatile electricity and gas prices are also to blame for the forecast increase. Turbulent geopolitical events during Ofgem's observation period for determining the cap, including the unpredictability of US trade policy, have also had an impact, while Israel's airstrikes on Iran intensified concerns about disruption to gas shipments. Prices have eased, however, with British wholesale gas costs dropping to the lowest level in more than a year. Also helping to keep the possible bill rise relatively small is news from the European Parliament that rules on gas storage stocks for the winter would be eased. Bulk buying and storage of gas in warmer months helps eliminate pressure on supplies when demand is at its highest during cold snaps. When will bills go down? A small drop in bills is forecast for January, but it is subject to geopolitical movements, weather patterns and changes to policy costs. An extra charge, for example, could be added to support new nuclear generating capacity. The official Ofgem announcement will be made on 27 August.
Daily Mail
a day ago
- Business
- Daily Mail
Warm Home Discount expansion will push energy prices higher in October, says leading forecaster
Energy bills are set to rise again when the price cap changes in October because of upcoming changes made by the regulator. The price cap will increase to £1,737 in autumn, according to energy consultancy Cornwall Insight in its final forecast. It represents a £17 - or 1 per cent - increase from the current price cap, which is currently set at £1,720 for a dual-fuel household. It means households would pay 26.29p/kWh for electricity and 6.19p/kWh for gas, with standing charges of 54p and 33p, respectively. Cornwall Insight said its forecast factors in Ofgem's changes, which include the expansion of the Warm Home Discount scheme for vulnerable households and is expected to add £15 to a typical bill. In June, the Government announced that nearly 3million more low-income households will be eligible for the £150 discount this winter. The forecaster added that wholesale prices for electricity and gas are on a downward trajectory but remain volatile because of geopolitical factors, with US trade policy an 'underlying concern'. Europe is expected to ease rules on gas storage stocks for the winter months which is expected to push prices downwards too. Dr Craig Lowrey, principal consultant at Corwnall Insight said: 'News of higher bills will not be welcomed by households, especially as winter approaches. 'While the added costs behind this forecasted rise are aimed at supporting those most in need, it does mean typical bills will increase despite relatively lower wholesale costs. It's a reminder that the price cap reflects more than just the market price of energy.' In the longer term, the forecaster anticipates a small drop in the price cap in January but this will depend on geopolitics, weather patterns, and changes to policy costs. While energy prices are slowly coming down, they remain higher than the levels seen before the energy crisis, but it's possible to get a fixed energy deal that is cheaper than the price cap. 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 says: 'A predicted 1 per cent increase in the October price cap may not seem significant - but it brings into sharp focus that consumers need to get ready for the winter now. 'Most households will use significantly more energy in the colder months, so the October cap rates will dictate the cost of keeping our homes warm as winter starts to bite for those households still on the price cap. 'Bill payers on a standard variable tariff can beat these expected rises and save on bills by switching to a well-priced fixed deal now.' Outfox Energy is offering a 12 month fixed deal at £1,455, representing a £265 saving on the July price cap and and £248 for October's predicted prices. Its 24 month deal offers a saving of £263 from the current price cap, while customers can save £261 via its 15 month deal. Fuse Energy's 13 month deal is priced at £1,460 which offers a saving on both the current and predicted price cap. The best fixed deals Supplier Tariff Fix duration Average annual bill Saving vs the July price cap (£1,720) Exit fees Availability Outfox Energy Fix'd Dual Aug25 12M v2.0 12 months £1,455 £265 £75 per fuel Direct via Outfox the Market Outfox Energy 2-year Fix'd Dual Aug25 v2.0 24 month £1,457 £263 £125 per fuel Direct via Outfox the Market Outfox Energy Fix'd Dual Aug25 15M v2.0 15 months £1,459 £261 £100 per fuel Direct via Outfox the Market Fuse Energy August 2025 Fixed (13m) V2 13 months £1,460 £260 £50 per fuel Special deal on: and direct via Fuse Energy Fuse Energy August 2025 Fixed (15m) V1 15 months £1,519 £201 £50 per fuel and direct via Fuse Energy Fuse Energy August 2025 Fixed (12m) V1 12 months £1,536 £184 £50 per fuel Direct via Fuse Energy Ecotricity EcoFixed 1 Year Green Tariff July 25 V6 12 months £1,540 £180 £75 per fuel Direct via Ecotricity Tulo Energy Tulo Fixed July 25 12 months £1,611 £109 £60 per fuel Direct via Tulo Energy So Energy So Eucalyptus One Year - Green 12 months £1,616 £104 £50 per fuel and direct via So Energy So Energy So Eucalyptus Two Year - Green 24 months £1,643 £77 £75 per fuel and direct via So Energy Source: Prices correct as of 9:00am on 18 August 2025. Tariffs included within the table are the cheapest non-bundle fixed tariffs, not variable or tracker. All energy tariffs and prices mentioned are subject to change without notice, and rates vary upon region. These are the cheapest tariffs available based on suppliers who have updated Uswitch with their rates. *No exit fees when taken direct. 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. > Check the best fixed rate energy deals with uSwitch and This is Money * 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.
Wall Street Journal
09-08-2025
- Business
- Wall Street Journal
How Much Damage Can Trump's Campaign Against Russian Oil Inflict on Moscow?
Three years ago, the Biden administration came up with what it considered a clever policy to curb Russia's ability to finance the war on Ukraine. Instead of trying to remove Russian oil from the global market, something that would have shaken economies worldwide, Washington quietly urged countries such as India to keep buying it—as long as Moscow was forced to sell at a steep discount. Its strategy of capping the price below market rate, developed when a barrel of crude neared $120, proved a boon for buyers. Top among them were India and China. But it failed to derail the Russian economy or dent President Vladimir Putin's ambitions to conquer Ukraine.
Daily Record
02-07-2025
- Business
- Daily Record
Martin Lewis urges people to lock in energy fix to avoid overpaying on new price cap
The consumer champion warns two-thirds of homes in Scotland, England and Wales are on the 'Pants Cap'. Martin Lewis is urging people on the price cap to switch to a fixed tariff as they will probably be overpaying on energy bills this summer, despite the seven per cent drop in gas and electricity prices. Writing in the latest edition of the MoneySavingExpert ( newsletter this week, the consumer champion shared a comprehensive guide to lowering your energy bills by a further 10 per cent. He explained that some two-thirds of homes in Scotland, England and Wales are on their energy supplier's 'bog-standard default tariff, which means its price is dictated by the regulator, Ofgem's Price Cap'. Along with comparable fixed tariff deals, the financial guru answers the most common questions and concerns people have about moving off the price cap, something he has dubbed the 'Pants Cap'. Martin wrote: 'The good news is that the Price Cap has been cut by 7 per cent today, meaning for every £100 you were paying, for the same energy use you'll now roughly pay £93. 'Yet that's still 10 per ecnt higher than this time last year, and the current prediction is it won't get much cheaper. So, frankly, the Price Cap still looks like a Pants Cap - if you're on it, you're likely overpaying.' You can work your way through Martin's full step-by-step guide to lowering your energy bills and locking in the best deal on here. Energy bills have fallen for households as latest forecasts predict a further on eper cent drop in October due to easing Middle East tensions. Analyst Cornwall Insight expects the cap to fall to £1,698 a year from the current £1,720 for a typical dual fuel consumer, but stressed 'significant uncertainty' remained with two months until the final figure is announced. The price cap sets the limit on how much firms can charge customers per unit of energy, but does not limit total bills because householders still pay for the amount of energy they consume. The latest cap is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the UK Government implemented the energy price guarantee. However, prices remain elevated at £152 or 10 per cent higher than the same period last year. Cornwall Insight said its latest forecast reflected wholesale prices falling as military tensions in the Middle East had eased. But it said the cap still remained hundreds of pounds above pre-pandemic prices, even when adjusting for inflation. Furthermore, there was little indication that prices would reduce substantially over the next few years, it warned. It is predicting a further small fall in January, with prices rising slightly in April, but said market volatility, geopolitical risks and potential changes - and additions - to the non-wholesale components of bills meant forecasts remained changeable. Cornwall Insight principal consultant Craig Lowrey said: 'While any reduction in energy bills is welcome, we must not let small fluctuations in the price cap mask the bigger picture. 'Households are still paying far more for their energy than they were before the pandemic, with the current outlook showing little prospect of a meaningful drop over the next few years. 'Our reliance on international energy markets means that while we have a range of supply sources, this brings with it a vulnerability to global events and price shocks – something that was evident in June. If we want to bring real stability and affordability to the energy system, we need to continue, and speed up, our transition to homegrown, renewable power. 'This transition will not happen overnight, and there will be short-term costs along the way. However, in the long-term, building a more self-sufficient energy system is the only way to help shield consumers from international volatility and put us on a more secure and sustainable path for the future.'
North Wales Live
24-06-2025
- Business
- North Wales Live
Martin Lewis warns 'bad news' ahead after latest energy price cap forecast released
Martin Lewis says that the amount Brits pay for their gas and electricity looks set to rise. The financial expert has studied energy price predictions from British Gas, and EDF Energy - widely known as the big three - to see how much prices could change. Mr Lewis said he had 'bad news', saying that a spike in wholesale gas rates means a leap in energy costs looks likely. It could mean that Ofgem, the energy regulator, could up the current price cap. The energy price cap, which is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you are on a standard variable tariff, is currently set at £1,720 per year for a typical household. It started on July 1 and expires on September 30, meaning a new one will come into effect on October 1. Mr Lewis said a drop was not out of the question, but said it would require a 'chunky fall in wholesale rates' to see a drop in October's price cap. He said: "Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. " I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use'; though far more relevant is the predicted % change as that's roughly what'll hit all homes. "The Cap is already locked in to fall in July... what counts now is what happens next. We're now 1/3 of the way through the assessment period for the 1 Oct Cap, and the predictions for that have risen rapidly over the last couple of weeks. This is because wholesale rates, which are the main changeable factor in the Price Cap, have spiked, meaning the predictions have gone up. "It would now take a chunky fall in wholesale rates for October not to be a rise. After that is more crystal ball gazing though. With the cheapest fixes currently around 15% cheaper than the current price cap, they look a very good bet for those on standard (ie Price Capped) tariffs if these predictions are right."
