Energy costs set for a 6.4% increase, effective from April onwards.
Got the Scoop: UK Energy Bills Soar, Here's Your Game Plan! 🌪️💰
Brace yourself, billpayers! The dreaded energy price cap is set to surge a whopping 6.4% from April 2025, pitting a major blow to your wallet.
The main culprit behind this ballooning cost? A recent surge in wholesale prices, which account for a whopping 78% of the rise. And it doesn't stop there - a scatter of policy costs and inflationary pressures make up a further 22%[1].
So, what does this mean for you? For an average household that duals up with gas and electricity, bills will hike by £111 per year to £1,849 per year between April and June[1]. Heavy energy users, prepare for a heftier hit.
But there's a bit of good news. Bills will be 9.4% cheaper than they were between April and June 2024, when the average dual-fuel household dishing out by direct debit shelled out £1,690 per year[1]. And guess what? It's still 22% or £531 lower than the astronomical prices we saw at the onset of the energy crisis in early 2023 when the Energy Price Guarantee was in play[1].
Jonathan Brearley, the CEO of Ofgem, isn't sugarcoating things. He acknowledged that while no price increase is a walk in the park, and with the energy quandary posing an enormous challenge for many householders, the pricey nature of energy continues to drive up bills due to our dependency on worldwide gas markets[1]. He emphasized the importance of speeding up investments in a cleaner, homegrown system[1].
Row 0 - Cell 0
Brearley also touched on the staggering energy debts that have gathered during the energy crisis, which are threatening to snowball unless action is taken[1]. Ofgem is cooking up plans for those struggling with unmanageable debt, and they've welcomed the government's support for their initiatives[1]. One of these potential interventions involves expanding the £150 Warm Home Discount scheme[1].
1 January to 31 March 2025
While some regional variation in standing charges remains, most households will see a reduction from April 1, with some witnessing a slight increase of up to £20 for a typical dual-fuel consumer[1]. The updated breakdown can be found in the table below:
1 April to 30 June 2025
| Label | Energy Price Cap per Unit and Standing Charge | Energy Price Cap per Unit and Standing Charge || --- | --- | --- || Row 0, Column 0 | 1 Jan to 31 Mar 2025 | 1 Apr to 30 Jun 2025 || Electricity | 24.86p per kWh, £60.97 daily standing charge | 27.03p per kWh, £53.80 daily standing charge || Gas | 6.34p per kWh, £31.65 daily standing charge | 6.99p per kWh, £32.67 daily standing charge |
(All figures are rounded to two decimal places and include 5% VAT[1].)
Electricity
ENOUGH WITH THE BAD NEWS! Here's what you can do to stem the tide:
24.86 pence per kWh
60.97 pence daily standing charge
- Shop Around: Ofgem encourages you to shop for the best deal and consider switching to a new supplier or locking down a fixed rate with your current one[1]. At the moment, there's a plethora of direct debit, fixed-rate tariffs that might offer around £50 in savings compared to the upcoming price cap level[1].27.03 pence per kWh53.80 pence daily standing charge
- Seek Assistance: If you're having a hard time making ends meet, reach out to your supplier for help or check out government-sponsored programs like the Warm Home Discount or the Cold Weather Payment[1].
- Be Energy Smart: Taking small steps, like using energy-efficient appliances and turning off idle appliances, can contribute to reduced costs[1].Gas
- Time Your Appliance Usage: Running washing machines and dishwashers during off-peak hours could help you save some dough[1].6.34 pence per kWh31.65 pence daily standing charge
- Invest in a Smart Thermostat: These nifty gadgets can help you automate heating costs[1].6.99 pence per kWh32.67 pence daily standing charge
- Upgrade Your Insulation: Proper insulation can help prevent heat loss and reduce your energy bills[1].
Are you tired of the high cost of energy? Then it's time to take action! Make a change today, and start taking control of your energy costs. Don't let energy companies take you for a ride; it's your time to save! 🐎💰💨
[1] Information and data derived from Ofgem reports and analysis.
- In light of the rising energy tariffs, it's crucial for personal finance to proactively manage savings by shopping around for energy suppliers offering lower rates or locking in a fixed rate with your current one, potentially saving around £50.
- Struggling with energy bills? Reach out to your supplier for assistance or explore government-sponsored programs like the Warm Home Discount or the Cold Weast Payment for additional support.
- To further reduce energy costs, consider becoming more energy-efficient by using energy-saving appliances, turning off idle appliances, and adjusting your appliance usage during off-peak hours.
- Smart investments can help manage personal finance in the long run, such as purchasing a smart thermostat to automate heating costs or upgrading your insulation to prevent heat loss.
- Keep up-to-date with the personal finance industry newsletter for the latest developments in energy prices, tariffs, and related policies that may impact your savings.
