Latest news with #ofgem
Powys County Times
23-05-2025
- Business
- Powys County Times
Household energy bills to fall by 7% from July, Ofgem says
Household energy bills will fall by 7% from July, Ofgem has confirmed. The typical bill 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 quarterly energy price cap will change from £1,849 on 1 July 2025. The new #pricecap is £1,720. It's a cap on energy unit price plus standing charge, not a cap on total bills. More ⬇️ — Ofgem (@ofgem) May 23, 2025 Tim Jarvis, director general of markets at Ofgem, said: 'A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible. 'We're also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.' The price cap does not limit total bills because householders still pay for the amount of energy they consume. However, 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% 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. Bill increases have led to Consumer Prices Index (CPI) inflation jumping to 3.5% in April, up from 2.6% in March and the highest since January 2024. Citizens Advice chief executive Clare Moriarty said: 'This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs. 'The Government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade five million homes with money-saving energy efficiency measures.' Simon Francis, coordinator of the End Fuel Poverty Coalition, said: 'The Government's reverse ferret on Winter Fuel Payments are a clear sign that ministers know that people are struggling with energy bills – but sticking-plaster solutions and U-turns won't help people in the long-term. '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.' Which? urged households still on a price cap-linked standard tariff to consider moving to a fixed deal. Natalie Hitchins, Which? home products and services editor, said: 'As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees. 'If you are on a fixed deal which will be more expensive than the July price cap then it's worth checking your exit fees and considering switching if you are on a deal with no charges to leave early.' Richard Neudegg, director of regulation at Uswitch, said: 'A 7% fall in the price cap from July will reduce the average annual bill by £129 for the millions of customers still sitting on a standard tariff – a welcome break in the clouds in time for summer. 'But 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. 'There are plenty of fixed deals still available that beat both the current and July energy rates. So for households still sitting on a standard tariff linked to the price cap, now is a great moment to lock in fixed savings before the winter gloom returns.'
South Wales Guardian
23-05-2025
- Business
- South Wales Guardian
Household energy bills to fall by 7% from July, Ofgem says
The typical bill 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 quarterly energy price cap will change from £1,849 on 1 July 2025. The new #pricecap is £1,720. It's a cap on energy unit price plus standing charge, not a cap on total bills. More ⬇️ — Ofgem (@ofgem) May 23, 2025 Tim Jarvis, director general of markets at Ofgem, said: 'A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible. 'We're also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.' The price cap does not limit total bills because householders still pay for the amount of energy they consume. However, 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% 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. Bill increases have led to Consumer Prices Index (CPI) inflation jumping to 3.5% in April, up from 2.6% in March and the highest since January 2024. Citizens Advice chief executive Clare Moriarty said: 'This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs. 'The Government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade five million homes with money-saving energy efficiency measures.' Simon Francis, coordinator of the End Fuel Poverty Coalition, said: 'The Government's reverse ferret on Winter Fuel Payments are a clear sign that ministers know that people are struggling with energy bills – but sticking-plaster solutions and U-turns won't help people in the long-term. '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.' Which? urged households still on a price cap-linked standard tariff to consider moving to a fixed deal. Natalie Hitchins, Which? home products and services editor, said: 'As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees. 'If you are on a fixed deal which will be more expensive than the July price cap then it's worth checking your exit fees and considering switching if you are on a deal with no charges to leave early.' Richard Neudegg, director of regulation at Uswitch, said: 'A 7% fall in the price cap from July will reduce the average annual bill by £129 for the millions of customers still sitting on a standard tariff – a welcome break in the clouds in time for summer. 'But 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. 'There are plenty of fixed deals still available that beat both the current and July energy rates. So for households still sitting on a standard tariff linked to the price cap, now is a great moment to lock in fixed savings before the winter gloom returns.'
The Herald Scotland
23-05-2025
- Business
- The Herald Scotland
Household energy bills to fall by 7% from July, Ofgem says
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 quarterly energy price cap will change from £1,849 on 1 July 2025. The new #pricecap is £1,720. It's a cap on energy unit price plus standing charge, not a cap on total bills. More ⬇️ — Ofgem (@ofgem) May 23, 2025 Tim Jarvis, director general of markets at Ofgem, said: 'A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible. 'We're also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.' The price cap does not limit total bills because householders still pay for the amount of energy they consume. However, 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% 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. Bill increases have led to Consumer Prices Index (CPI) inflation jumping to 3.5% in April, up from 2.6% in March and the highest since January 2024. Citizens Advice chief executive Clare Moriarty said: 'This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs. 'The Government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade five million homes with money-saving energy efficiency measures.' Simon Francis, coordinator of the End Fuel Poverty Coalition, said: 'The Government's reverse ferret on Winter Fuel Payments are a clear sign that ministers know that people are struggling with energy bills – but sticking-plaster solutions and U-turns won't help people in the long-term. '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.' Which? urged households still on a price cap-linked standard tariff to consider moving to a fixed deal. Natalie Hitchins, Which? home products and services editor, said: 'As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees. 'If you are on a fixed deal which will be more expensive than the July price cap then it's worth checking your exit fees and considering switching if you are on a deal with no charges to leave early.' Richard Neudegg, director of regulation at Uswitch, said: 'A 7% fall in the price cap from July will reduce the average annual bill by £129 for the millions of customers still sitting on a standard tariff – a welcome break in the clouds in time for summer. 'But 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. 'There are plenty of fixed deals still available that beat both the current and July energy rates. So for households still sitting on a standard tariff linked to the price cap, now is a great moment to lock in fixed savings before the winter gloom returns.'
South Wales Argus
23-05-2025
- Business
- South Wales Argus
Household energy bills to fall by 7% from July, Ofgem says
The typical bill 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 quarterly energy price cap will change from £1,849 on 1 July 2025. The new #pricecap is £1,720. It's a cap on energy unit price plus standing charge, not a cap on total bills. More ⬇️ — Ofgem (@ofgem) May 23, 2025 Tim Jarvis, director general of markets at Ofgem, said: 'A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible. 'We're also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.' The price cap does not limit total bills because householders still pay for the amount of energy they consume. However, 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% 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. Bill increases have led to Consumer Prices Index (CPI) inflation jumping to 3.5% in April, up from 2.6% in March and the highest since January 2024. Citizens Advice chief executive Clare Moriarty said: 'This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs. 'The Government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade five million homes with money-saving energy efficiency measures.' Simon Francis, coordinator of the End Fuel Poverty Coalition, said: 'The Government's reverse ferret on Winter Fuel Payments are a clear sign that ministers know that people are struggling with energy bills – but sticking-plaster solutions and U-turns won't help people in the long-term. '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.' Which? urged households still on a price cap-linked standard tariff to consider moving to a fixed deal. Natalie Hitchins, Which? home products and services editor, said: 'As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees. 'If you are on a fixed deal which will be more expensive than the July price cap then it's worth checking your exit fees and considering switching if you are on a deal with no charges to leave early.' Richard Neudegg, director of regulation at Uswitch, said: 'A 7% fall in the price cap from July will reduce the average annual bill by £129 for the millions of customers still sitting on a standard tariff – a welcome break in the clouds in time for summer. 'But 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. 'There are plenty of fixed deals still available that beat both the current and July energy rates. So for households still sitting on a standard tariff linked to the price cap, now is a great moment to lock in fixed savings before the winter gloom returns.'
Yahoo
25-02-2025
- Business
- Yahoo
Household energy bills rising from April as millions more to gain £150 discount
Households are facing a 6.4% jump in their energy bills from April amid proposals to give around three million more homes access to a £150 discount. Ofgem said the increase to the price cap, which will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from the current £1,738 a year to £1,849, followed a recent spike in wholesale prices. The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap. This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the height of the energy crisis at the start of 2023. The quarterly energy price cap will change from £1,738 on 1 April 2025. The new #pricecap is £1,849. It's a cap on energy unit price plus standing charge, not a cap on total bills. More ⬇️ — Ofgem (@ofgem) February 25, 2025 Ofgem chief executive Jonathan Brearley said: 'We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households. 'But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it's more important than ever that we're driving forward investment in a cleaner, homegrown system. 'Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. 'We're developing plans that could give households with unmanageable debt the clean slate they need to move forward.' It came as the Government announced it is consulting on offering more support to UK consumers facing an 'unpredictable international energy market'. The Department for Energy Security and Net Zero (DESNZ) said on Tuesday that one in five families in Britain would get financial help in the proposals. Around 2.7 million extra households, including nearly one million with children, would be eligible for the £150 Warm Home Discount next winter, it added. This would bring the total number of recipient homes to an estimated 6.1 million. Energy Secretary Ed Miliband said the rising price cap was 'worrying news' for many families. Mr Miliband said: 'This Government is determined to do everything we can to protect people from the grip of fossil fuel markets. 'Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country. 1/ The rise in energy bills, as a result of the global spike in gas prices, will be worrying news for families. As long as we remain exposed to fossil fuel markets, we'll be stuck on the rollercoaster of prices. We're taking action👇 — Ed Miliband (@Ed_Miliband) February 25, 2025 'Alongside this, the way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower with homegrown clean power that we in Britain control.' Ofgem said four million customers have moved to a fixed tariff since its last price cap announcement in November, taking the total to 11 million, meaning they will not be affected by the increase. This was the largest movement of customers coming off the price cap and on to a fixed deal since the energy crisis, the regulator said. However, Citizens Advice chief executive Dame Clare Moriarty said the service was helping people every day who 'simply can't afford this latest price hike' as its latest research showed the number of people living in debt to their energy supplier had reached a new high of nearly seven million. Dame Clare said: 'We're particularly concerned about households with children, where over one in three struggle to afford bills, rising to more than half of those on low incomes. 'The Government can't let another winter go by without targeted support for those most in need, and there is a way of paying for this. Our recent analysis found energy network companies made billions in excess profits while households have faced soaring bills, and it's only right this money be used to help fund better-targeted bill support and much-needed debt relief.' The price cap increase follows a warning to households of at least months of pain after the Bank of England forecast higher-than-expected inflation this summer due to rising bills. The Bank's warning that inflation will hit a peak of 3.7% later in the summer follows a multitude of predicted hikes to household expenses, including food, energy, water, council tax and bus fares.
