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The Herald Scotland
3 hours ago
- Business
- The Herald Scotland
Energy bills expected to rise despite wholesale cost drop
The typical household energy bill is expected to rise by £17 to £1,737 per year when regulator Ofgem's new price cap comes into force, experts at Cornwall Insight have predicted. The latest prediction is a turnaround from its previous forecast in July that bills would drop by 1% from the current £1,720 in October due to easing Middle East tensions. Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "We're about to face our fifth winter of the energy bills crisis, with the average family still paying hundreds of pounds more than they did just a few years ago. "One of the main culprits is the price of gas, which tripled at the height of the crisis and is still 81% higher than before. "What's more, the North Sea, once seen as the nation's source of gas, is in terminal decline and it simply cannot provide power for our heating systems for the long term. If we want affordable, secure energy, we have to look beyond gas and slash the cost of clean electricity." Forecasts suggest Ofgem's October price cap will nudge up by around 1% to £1,737 (about +£17). That means a fifth winter of the energy bills crisis, with families still paying far more than a few years ago. The core problem is gas: prices tripled at the peak and remain around… — End Fuel Poverty Coalition (@EndFuelPoverty) August 19, 2025 Cornwall Insight said its forecast reflected changes it assumed Ofgem would be introducing in the upcoming cap period, including the expansion of the Warm Home Discount scheme for vulnerable households that would add around £15 to a typical bill, while also providing £150 in support to 2.7 million additional people. However, it also noted that wholesale prices for electricity and gas had been 'volatile', largely reflecting geopolitical factors including uncertainty over US trade policy. Cornwall Inisight said it expected a small drop in the price cap in January, but this was dependent on geopolitical movement, weather patterns, changes to policy costs and the potential introduction of costs such as those to support investment in new nuclear generating capacity. Dr Craig Lowrey, principal consultant at Cornwall Insight, commented: 'News of higher bills will not be welcomed by households, especially as winter approaches. 📢 Final October Price Cap Forecast Released. Our final forecast for October predicts the energy price cap will rise to £1,737 annually for typical dual fuel household this winter - an increase of £17 and 1% from current levels. What is impacting the cap? 📈 Expansion of the… — Cornwall Insight (@CornwallInsight) August 19, 2025 '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. 'This immediate challenge underscores a broader uncertainty facing millions of households, with current forecasts suggesting a sharp drop in bills is unlikely in the near term. 'Longer term, Ofgem's review of how Britain's energy system costs are distributed could reshape the financial burden on consumers, but while some may see savings, others could face higher charges. 'The real hope for lasting relief lies in the longer-term transition towards clean power and energy independence, which offers the greatest prospect of both stability and lower costs.' Recommended reading: What is the Energy Price Cap? 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.
Wales Online
01-07-2025
- Business
- Wales Online
Energy bills cut by £129 from today but thousands warned of looming change
Energy bills cut by £129 from today but thousands warned of looming change The first price cap cut for a year is due to come into effect on July 1, although households are being warned not to expect to see the saving fully reflected in their bills The energy price cap is being cut from Tuesday (Image: SWNS ) From Tuesday onwards millions of homes across the nation will experience a reduction in their energy bills, yet advocates warn that many may not notice the change. The Ofgem price cap is set to decrease by 7%, marking its first decline in a year, with the average annual energy cost dropping to £1,720 from July 1. This represents a tentative annual saving of £129 for an average household. However, the relief is temporary, covering only the summer period when energy usage is lowest, and it is due to be reassessed in October. Charities have highlighted that average bills are about £580 higher per annum than in April 2021, prior to the escalation of prices following Russia's invasion of Ukraine, reports the Mirror. Adam Scorer, head of National Energy Action, stated: "Bills remain punishingly high for low-income households, many of whom are still paying off debt accrued during the energy crisis." For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here . Simon Francis, at the helm of the End Fuel Poverty Coalition, added: "Millions will be looking for cheaper energy deals, but too many will be locked out of the best tariffs due to broken or missing smart meters. This is creating a two-tier energy system that punishes households already struggling." "Energy bills remain hundreds of pounds a year more than before the energy bills crisis, in part caused by structural problems in the UK's energy pricing system caused by the cost of electricity remaining closely linked to volatile global gas markets. "Not only is this reliance on gas costing us money, but the geological reality is that the North Sea basin is dying and there are limited levels of gas for home heating left, the UK is simply running out of gas. This is also becoming a national security issue as Britain's dependence on foreign gas deepens." Article continues below The price cap, which is reviewed every three months, relates to the unit rate charged rather than the overall bill. However, Ofgem has indicated that a standard customer receiving both gas and electricity from the same provider paid via direct debit will now incur annual bills of £1,720 instead of £1,849. However, so called 'network charges' are set to rise as the price cap eases. The charges are currently make up 22% of a typical household bill and are set to go up from April next year, placing more upwards pressure on UK household finances. Ofgem's draft determination on how much it will allow network operators to charge energy suppliers from April 1, 2026 to March 31, 2031 would push up network costs for British Gas, OVO, EDF, EON and Octopus household bills by £24 a year. The regulator's chief executive, Jonathan Brearley, said: "Britain's reliance on imported gas has left us at the mercy of volatile international gas prices which during the energy crisis would have caused bills to rise as high as £4000 for an average household without government support. "Even today the price cap can move up or down by hundreds of pounds with little we can do about it. This record investment will deliver a homegrown energy system that is better for Britain and better for customers. It will ensure the system has greater resilience against shocks from volatile gas prices we don't control. "These 80 projects are a long-term insurance policy against threats to Britain's energy security and the instability of prices. By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future we can boost growth and give ourselves more control over prices too. Article continues below "Doing nothing is not an option and will cost consumers more - this is critical national infrastructure. The sooner we build the network we need, and invest to strengthen our resilience, the lower the cost for bill payers will be in the future."
North Wales Chronicle
30-06-2025
- Business
- North Wales Chronicle
Energy Price Cap drop to £1720 - Still £150 more than 2024
The typical household bill for those who have still not signed up to a fixed tariff will drop by £129 to £1,720 per year when the regulator's new price cap – which sets the limit on how much firms can charge customers per unit of energy – comes into force. This is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the government implemented the energy price guarantee. However, prices remain elevated with the upcoming level £152 (10%) higher than the same period last year. The price cap does not limit total bills because householders still pay for the amount of energy they consume. While around 35% of domestic customers are now signed up to a fixed deal that they have actively sought out – and which is not governed by the price cap – approximately 22 million households in England, Wales, and Scotland are still on the energy price cap. Martin Lewis is urging those still on the cap to shop around for a better deal: "The Energy Price Cap for July is to drop by 7%, yet it's still a Pants Cap, get off it if possible." The Energy Price Cap for July is to drop by 7%, yet it's still a Pants Cap, get off it if possible. Video briefing on what it means in practice, and what you should do… It is these households that should read their meter by the end of the month to make sure they benefit fully from lower energy prices from July 1. Failing to do so leaves the risk of paying the higher pre-July 1 rate for energy used in the form of estimated bills. Research for the comparison site Uswitch suggests that a fifth of households (20%) without smart meters have not submitted their meter readings in the last three months, and 6% have not done so for a whole year. Uswitch calculated that homes on a standard price cap tariff with average usage are expected to spend £63 on energy in July compared with £113 in June, due to a combination of cheaper unit rates and lower usage over the summer. It urged households to sign up to a fixed deal while prices remain competitive, and said there were 10 fixed deals available which were cheaper than the July price cap – the cheapest offering savings of around £145 for the average household. However, average energy bills will continue to be 10% higher (almost £150) than this time last year. They are hundreds and hundreds of pounds a year more than before the energy bills crisis (65% more). Simon Francis, coordinator of the End Fuel Poverty Coalition says: 'From 1 July, millions will be looking for cheaper energy deals, but too many will be locked out of the best tariffs due to broken or missing smart meters. This is creating a two-tier energy system that punishes households already struggling. 'Energy bills remain hundreds of pounds a year more than before the energy bills crisis. This is in part caused by structural problems in the UK's energy pricing system caused by the cost of electricity remaining closely linked to volatile global gas markets. 'Not only is this reliance on gas costing us money, but the geological reality is that the North Sea basin is dying and there are limited levels of gas for home heating left, the UK is simply running out of gas. This is also becoming a national security issue as Britain's dependence on foreign gas deepens.' I'm not lying. I'm just someone who knows what he's talking about, rather than an idiot relying on AI answers. Wholesale costs are less than half of total bills. Source: Uswitch energy spokesman Ben Gallizzi is reminding customers to take a meter reading before the changes: 'Customers who don't have a smart meter should submit their readings before or on Tuesday 1 July, so their supplier has an updated – and accurate – view of their account. 'There's a lot of uncertainty about global energy costs at the moment, which has led industry experts to predict a rise in energy bills and in the price cap this autumn. 'But households can get ahead of this possible price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £145 cheaper than the July price cap for the average household. 'If you can switch to a deal cheaper than the July price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.' Recommended reading: Martin Lewis shares 'crucial need to know' energy bill rules Ofgem has also reminded households that they do not have to pay the price cap, saying 'there are better deals out there'. The 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% price cap increase. Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax.
Leader Live
30-06-2025
- Business
- Leader Live
Energy Price Cap drop to £1720 - Still £150 more than 2024
The typical household bill for those who have still not signed up to a fixed tariff will drop by £129 to £1,720 per year when the regulator's new price cap – which sets the limit on how much firms can charge customers per unit of energy – comes into force. This is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the government implemented the energy price guarantee. However, prices remain elevated with the upcoming level £152 (10%) higher than the same period last year. The price cap does not limit total bills because householders still pay for the amount of energy they consume. While around 35% of domestic customers are now signed up to a fixed deal that they have actively sought out – and which is not governed by the price cap – approximately 22 million households in England, Wales, and Scotland are still on the energy price cap. Martin Lewis is urging those still on the cap to shop around for a better deal: "The Energy Price Cap for July is to drop by 7%, yet it's still a Pants Cap, get off it if possible." The Energy Price Cap for July is to drop by 7%, yet it's still a Pants Cap, get off it if possible. Video briefing on what it means in practice, and what you should do… It is these households that should read their meter by the end of the month to make sure they benefit fully from lower energy prices from July 1. Failing to do so leaves the risk of paying the higher pre-July 1 rate for energy used in the form of estimated bills. Research for the comparison site Uswitch suggests that a fifth of households (20%) without smart meters have not submitted their meter readings in the last three months, and 6% have not done so for a whole year. Uswitch calculated that homes on a standard price cap tariff with average usage are expected to spend £63 on energy in July compared with £113 in June, due to a combination of cheaper unit rates and lower usage over the summer. It urged households to sign up to a fixed deal while prices remain competitive, and said there were 10 fixed deals available which were cheaper than the July price cap – the cheapest offering savings of around £145 for the average household. However, average energy bills will continue to be 10% higher (almost £150) than this time last year. They are hundreds and hundreds of pounds a year more than before the energy bills crisis (65% more). Simon Francis, coordinator of the End Fuel Poverty Coalition says: 'From 1 July, millions will be looking for cheaper energy deals, but too many will be locked out of the best tariffs due to broken or missing smart meters. This is creating a two-tier energy system that punishes households already struggling. 'Energy bills remain hundreds of pounds a year more than before the energy bills crisis. This is in part caused by structural problems in the UK's energy pricing system caused by the cost of electricity remaining closely linked to volatile global gas markets. 'Not only is this reliance on gas costing us money, but the geological reality is that the North Sea basin is dying and there are limited levels of gas for home heating left, the UK is simply running out of gas. This is also becoming a national security issue as Britain's dependence on foreign gas deepens.' I'm not lying. I'm just someone who knows what he's talking about, rather than an idiot relying on AI answers. Wholesale costs are less than half of total bills. Source: Uswitch energy spokesman Ben Gallizzi is reminding customers to take a meter reading before the changes: 'Customers who don't have a smart meter should submit their readings before or on Tuesday 1 July, so their supplier has an updated – and accurate – view of their account. 'There's a lot of uncertainty about global energy costs at the moment, which has led industry experts to predict a rise in energy bills and in the price cap this autumn. 'But households can get ahead of this possible price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £145 cheaper than the July price cap for the average household. 'If you can switch to a deal cheaper than the July price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.' Recommended reading: Martin Lewis shares 'crucial need to know' energy bill rules Ofgem has also reminded households that they do not have to pay the price cap, saying 'there are better deals out there'. The 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% price cap increase. Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax.
Daily Mirror
30-06-2025
- Climate
- Daily Mirror
'Shambolic' mass meter replacement 'could leave households without hot water'
Energy bosses insist they are doing all they can to prepare households for a meter switch-over but concerns remains that people could be caught out A mass switch-off of nearly 300,000 electricity meters has been branded a 'shambles' as it formally got under way. Critics warn households risk being left without hot water or heating - an even bigger issue if the process is not concluded by the autumn, which is looking highly unlikely. Some older electricity meters will stop working when the Radio Teleswitch Service - a signal that tells them when to switch between peak and off-peak rates - is phased out. These meters, which include some Economy 7 versions, will have to be removed and replaced with more modern smart meters instead. But despite the industry having ages to prepare for the switch over, it is believed there are nearly 300,000 of the older style meters still in people's homes. The deadline has already been delayed from March last year. The process is starting off slowly for fears that large numbers of people will be caught out, with concerns ranging from them being left with no electricity, through to not being able to turn the heating off, and electric storage heaters charging at the wrong time of day and possibly leading to higher bills. Industry body Energy UK said a 'small number' of meters were deactivated yesterday, without going into more detail. Sources suggested plans have been approved by regulator Ofgem and ministers to switch off around 600 in July. Energy UK also refused to reveal where the first areas were, despite saying people with affected meters had been informed directly, as had MPs, MSPs and local authorities with activity within their areas. Other sources said it is understood to include parts of south-east London, the East Midlands and south Wales. With the heatwave, campaigners are less concerned now than what will happen when the cold weather hits later in the year. Without a dramatic increase in the switch to smart meters, there are concerns that people could be left without hot water and heating in the autumn, when temperatures begin to tumble. Simon Francis, coordinator of the End Fuel Poverty Coalition, said: 'It's all a shambles'. Speaking last month, he said: 'Government, regulators and energy firms need to face up to the looming crisis and ramp up efforts to help people switch.' Dhara Vyas, chief executive of Energy UK, said: 'Hundreds of thousands of people have already replaced their meter successfully, and suppliers have ramped up resources and are ready to go. Due to high demand, appointments are being booked up quickly, and so people should get in touch as soon as possible, and not wait until it's too late.' She added: 'It remains our objective to replace as many meters as possible quickly whilst still carefully managing our approach, as the longer the service runs the more chance of failure, which could affect hundreds of thousands of homes at once. 'So we need everyone's help in responding to suppliers' communications, ensuring they book an appointment and sticking to appointments if they have them booked.' There are different reasons why households might still have one of the older meters, with one reason being they live in an area with no gas supply. According to Energy UK, you may have an RTS meter if: * The property is heated using electricity or storage heaters. * You get cheaper energy at different times of day (usually overnight). The tariff might be Economy 7, Economy 10 or Total Heat Total Control. * There is no gas supply to the property. This is often the case in blocks of flats and premises in rural areas. * There may be a separate switch box near your consumer's meter with a Radio Teleswitch (RTS) label on it.
