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Daily Mirror
03-07-2025
- Automotive
- Daily Mirror
Brits charging their EVs at home urged to act now following major announcement
Major changes that came into effect across the nation earlier this week mean more than a million drivers in the UK might be paying significantly more than they need to — unless they take action now UK motorists with electric vehicles (EVs) have been issued a costly warning if they don't take action swiftly. The new Ofgem energy price cap has officially come into effect, which is particularly relevant for more than a million EV owners who charge their cars on their drive at home. Experts say now is the perfect time to explore potentially switching your energy tariff to save money by opting for a fixed-term deal or an EV-based tariff. David Watson, CEO of Ohme — a company that specialises in EV smart home chargers — said: "Charging at home will always be the most affordable place for EV drivers to charge their cars and this lower electricity price is great news to help them reduce their running costs. However, any EV driver charging at home should look at switching to one of the wide range of energy tariffs that drop those costs still further to help save them even more money." Switching from a standard variable tariff to a fixed-term deal could result in major savings for many households — but particularly those with home-charged EVs. Many energy firms now also have energy tariffs specifically for EV drivers, allowing them to charge their cars at night using cheaper off-peak electricity. For example, British Gas currently has an EV energy tariff that charges customers 7.9p per kWh between 12am and 5am. Similarly, Eon's Next Drive tariff charges Brits 6.7p per kWh when you plug in your car between 12am and 7am. As previously reported, UK energy industry regulator Ofgem announced that from July 1, 2025, the price cap for the average dual-fuel household paying by Direct Debit would be set at £1,720. This represents a reduction of £129, or seven per cent from the previous annual rate of £1,849. While this decrease will be welcomed by many, the new cap remains 34 per cent higher than the rates in place before the UK energy crisis began towards the autumn of 2021. The energy price cap was lowered to £1,568 in July 2024 — the lowest point since the onset of the energy crisis — before increasing to £1,717 in October 2024, then to £1,738 in January 2025, and up to the previous limit of £1,849 in April 2025. Ben Gallizzi, senior content editor at Uswitch, also said: "The price cap will drop by seven per cent in July, but customers can start saving now by fixing their deal. There are deals available to switch to that can save around £250 a year against the price cap. If you have the option of getting off a standard variable tariff and ditching the price cap, it's worth doing that now." The government intervened in October 2022, when Ofgem's price cap was projected to soar to £4,279 by January 2023. In an effort to help households manage these escalating costs, the energy price guarantee was introduced, initially setting a 'safety cap' of £2,500 a year for an average dual-fuel customer — with government subsidies covering the difference. By May 2023, this guarantee was increased to £3,000, and the measure has since been scrapped entirely.
Daily Mirror
01-07-2025
- Business
- Daily Mirror
People urged to still send in energy meter readings as new price cap kicks in
The typical household bill for those who have not signed up to a fixed tariff has dropped by £129 to £1,720 per year when the regulator's new price cap came into force today (July 1) Households have been encouraged to submit their meter readings as the energy price cap decreases by seven per cent today. The average household bill for those who haven't yet committed to a fixed tariff has reduced by £129 to £1,720 annually when the regulator's new price cap - which determines the maximum amount companies can charge customers per unit of energy - took effect on July 1. This is £660 (28%) less than during the peak of the energy crisis at the beginning of 2023 when the UK Government introduced the energy price guarantee. However, prices are still high with the forthcoming level being £152 (10%) more than the same period last year. The price cap doesn't restrict the total amount people pay for their energy bills - the more energy consumed, the higher the cost and vice versa. Providing a meter reading ensures that those who pay via Direct Debit receive an accurate bill next month, rather than an estimate based on usage at the previous rate. While approximately 35 per cent of domestic customers have actively chosen a fixed deal not subject to the price cap, around 22 million households in Scotland, England, and Wales remain under the energy price cap. These households should take their meter readings this week to ensure they benefit from the reduced energy prices from 1st July, reports the Daily Record. Research conducted for comparison website Uswitch indicates that 20% of households without smart meters have not submitted their meter readings in the past three months, with 6% failing to do so for an entire year. Uswitch estimates that homes on a standard price cap tariff with average usage are projected to spend £63 on energy in July, compared to £113 in June. This decrease is attributed to a combination of lower unit rates and reduced usage during the summer months. The company encourages households to take advantage of competitive prices by signing up for a fixed deal. It highlighted that there are currently 10 fixed deals on offer that are cheaper than the July price cap, with the most affordable option saving the average household approximately £145. Uswitch's energy spokesperson, Ben Gallizzi, advised: "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." He added: "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." Gallizzi further suggested: "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." He concluded: "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." Ofgem has issued a reminder to households that they needn't stick with the price cap, asserting "there are better deals out there". Emily Seymour, energy expert at Which?, commented on the changes, saying: "Consumers will be relieved that the energy price cap will fall by 7 per cent from 1st July. "The change to energy prices means that the summer could be a good time to shop around for fixed deals. 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 from earlier in the year which leaves you paying more than the July price cap then you might be considering switching early. "Check whether your contract has exit fees - if yours has no or low fees it could be worth changing to a new tariff. Some contracts charge large fees to leave early, which would cancel out any savings. "If you've not yet fixed a deal and your variable rates are changing from 1 July, submit a meter reading to ensure you pay the cheaper rates for any energy used after the new price cap takes effect."
Scottish Sun
25-06-2025
- Business
- Scottish Sun
Huge boost for EVERY energy customer next week as bills drop by £129 offering relief for millions of households
Keep scrolling to find out more about the upcoming change good energy Huge boost for EVERY energy customer next week as bills drop by £129 offering relief for millions of households A HUGE £129 boost is set to offer relief for millions of energy customers next week. A typical household's annual gas and electricity bill cost will be reducing by £129 - for a dual-fuel household. 3 A big £129 boost is coming for energy customers next week Credit: Getty 3 Customers have been given a warning ahead of July 1 price changes Credit: Getty What's happening? This will see customers from every energy firm - such as British Gas, Octopus, OVO, and EDF - receive the boost. Energy regulator Ofgem announced prices for households on standard variable tariffs will be reduced by 7% on July 1. The price will drop from £1,849 to £1,720 - making for a reduction of £129. Furthermore, from Tuesday, the unit rates will be decreased for both gas and electricity - in addition to the standing charges. It will see electricity cost 25.73p per unit, having been reduced from 27.03p. Meanwhile, the standing charge will decrease from 53.80p per day to 51.37p. As for gas, the unit rates will have slight reductions with 6.99p to 6.33p, as well as standing charges decreasing from 32.67p to 29.82p. In its announcement, Ofgem said: "Between 1 July and 30 September 2025, the energy price cap is set at £1,720 per year for a typical household who use electricity and gas and pay by Direct Debit. "This is a decrease of 7% compared to the cap set between 1 April to 30 June 2025 (£1,849). 'The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy." Stop Making This Air Conditioning Mistake: How to Slash Your Summer Energy Bill Am I covered by this? Customers are covered by the price cap if they pay for electricity and gas by either Direct Debit, prepayment meter, standard credit or Economy 7 (E7) meter. For people not on a fixed deal, their prices will be changing from 0.01am on Tuesday. Previous warning Millions of energy customers were warned to make an essential bill check ahead of the price cap change. Households on standard variable tariffs without a smart meter should make it a priority to submit their electricity and gas meter readings to their supplier as close to July 1 as possible. This ensures they are billed accurately at the new, lower rates. Failing to submit readings could mean some of your usage after this date is charged at the previous, higher rates. 4 ways to keep your energy bills low Laura Court-Jones, Small Business Editor at Bionic shared her tips. 1. Turn your heating down by one degree You probably won't even notice this tiny temperature difference, but what you will notice is a saving on your energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving fast. This one small action only takes seconds to carry out and could potentially slash your heating bills by £171.70. 2. Switch appliances and lights off It sounds simple, but fully turning off appliances and lights that are not in use can reduce your energy bills, especially in winter. Turning off lights and appliances when they are not in use, can save you up to £20 a year on your energy bills 3. Install a smart meter Smart meters are a great way to keep control over your energy use, largely because they allow you to see where and when your gas and electricity is being used. 4. Consider switching energy supplier No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you've let a fixed-rate contract expire without arranging a new one. If you haven't browsed any alternative tariffs lately, then you may not be aware that there are better options out there. Suppliers who have not received meter readings rely on estimated usage, which could lead to households being overcharged. However, even if you take your meter readings near July 1, you don't need to submit them immediately. Many suppliers allow extra time for customers to provide their readings. Some offer a few days after the price cap changes to submit backdated readings, while others may allow up to a week or more.
Daily Record
25-05-2025
- Business
- Daily Record
Livingston MP welcomes Ofgem's energy price cap drop
From July 1, the energy price cap will drop by seven per cent to £1,720 per year for a typical household using both electricity and gas and paying by Direct Debit. Livingston MP Gregor Poynton, has welcomed Ofgem's announcement that energy bills will fall by £129 a year for typical households, providing much-needed relief for families across the constituency. From July 1, the energy price cap will drop by seven per cent to £1,720 per year for a typical household using both electricity and gas and paying by Direct Debit. This means families will save around £11 every month on their energy bills. 'This is fantastic news for working families in Livingston,' said Mr Poynton. 'At a time when household budgets are under pressure, this £129 annual reduction will make a real difference to people's finances. 'That's money that can go towards other essential family expenses or be saved for the future.' The reduction comes as global wholesale energy prices have fallen, with Ofgem's latest quarterly review reflecting these lower costs in the price cap that protects millions of households from excessive charges. However, Mr Poynton emphasised that long-term energy security for Livingston and the rest of the country can only come through the Government's mission for clean homegrown power. He said: 'While today's news is welcome, we need to get off the rollercoaster of fossil fuel markets. That's how we bring down bills for good and give families the certainty they deserve.' For West Lothian residents, the new rates from 1 July will mean paying an average of 25.73 pence per kilowatt hour for electricity (with a daily standing charge of 51.37 pence) and 6.33 pence per kilowatt hour for gas (with a daily standing charge of 29.82 pence). 'Every penny counts for families across West Lothian,' added Mr Poynton. 'This price reduction shows that the Government's approach is working, but we won't stop here. 'Our commitment to clean, homegrown energy will deliver the long-term security and affordability that my constituents deserve.' Livingston residents who are struggling with energy bills are reminded that their energy supplier must help if they ask, and that switching tariffs or suppliers could potentially save even more money.
Epoch Times
23-05-2025
- Business
- Epoch Times
Ofgem's 7 Percent Energy Price Drop Isn't a Win for Consumers: Experts
A 7 percent reduction in energy prices announced by Ofgem simply restores prices to where they were at the beginning of the year, leaving energy bills higher than they were 12 months ago, experts have warned. From July to Sept. 30, the typical household paying by Direct Debit will save £11 a month, the regulator said on Friday. Prime Minister Sir Keir Starmer He added that the government is going 'further and faster to tackle the cost of living crisis and put more money back in your pocket.' The energy price cap went up 10 percent in October 2024, 1.2 percent in January, and 6.4 percent in April. Consumer advocates argue that the latest reduction merely cancels out the most recent hike. 'Today's announcement that the price cap is to fall by 7 percent, 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,' Is the Price Cap Still Doing Its Job? The energy price cap was originally designed as a protective backstop for consumers who were unable or unwilling to switch tariffs. Related Stories 11/22/2024 2/20/2025 Over time, however, it has become the standard pricing mechanism for more than 22 million customers. Lewis criticised this development, arguing that the cap lags behind fixed deals available in the market. 'Compare these falls to the cheapest fixes on the market today, which are 18 percent below the current cap, showing the price cap is a pants cap,' he said. Consumer groups such as Uswitch said that cheapest fixed deal could save the average household £203 a year compared with Ofgem's £129 figure. '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,' said Richard Neudegg, director of regulation at Uswitch. Which? also encouraged customers on fixed deals that are now more expensive than the new cap to check for exit fees and consider switching if their current plan allows. Price Fluctuations The cap reduction reflects a fall in the international price of wholesale gas, explained the regulator's Director General Tim Jarvis. Ofgem also noted that lower supplier business costs have contributed to the reduction in energy prices. Global energy prices surged following the start of the war in Ukraine, leading to sharp increases for consumers. The first major impact on UK customers on standard variable tariffs came in April 2022, when the energy price cap rose by 54 percent. Although prices have since eased slightly, they remain well above pre-war levels. Gas prices have nearly doubled, rising by an estimated 80 to 110 percent, while electricity prices are up by approximately 25 to 40 percent. '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,' said Jarvis. Energy regulator Ofgem's sign in an undated file photo. Yui Mok/PA Criticism of the Regulatory System The wider energy regulatory framework is also under growing scrutiny. Citizens Advice, the national network of charities, has warned that nearly 7 million people in the UK are living in households that have fallen behind on their energy bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs,' said the organisation's chief executive, Dame Clare Moriarty. A In response, the Energy Networks Association (ENA) said Britain has one of the most reliable grids and called the report 'overly simplistic.' The ENA said the analysis ignored long-term investment plans, including over £100 billion due to be spent between 2021 and 2031. They also stressed the importance of a stable regulatory system. Moriarty urged ministers to provide more targeted support with energy bills, particularly for pensioners affected by cuts to the winter fuel payments (WFPs). Trade unions have also raised concerns about the role of Ofgem and the structure of the market itself. Unite General Secretary Sharon Graham said the regulator had lost public trust and accused it of allowing multinational companies to make excessive profits. She called for urgent reform to address what she described as deep-rooted problems in the energy system. 'We urgently need to reverse the market madness and address the real causes of the lingering energy crisis,' she said. Little Relief for Older Households Pensioners in particular may see little benefit from the cap reduction. According to the End Fuel Poverty Coalition, more than 3 million pensioner households face unaffordable energy bills. Nearly a million of these are in deep fuel poverty, meaning they spend more than 20 percent of their income on energy. Until 2024, all pensioners could receive a WFP of £200 a year, or £300 if someone in the household was over 80. It was paid regardless of income or savings, but cuts to the benefit meant that it would only go to low-income pensioners. The WFP has not increased since 2000 and in real terms its value has halved. The average summer energy bill now consumes more than 60 percent of the standard £200 WFP. This week, in what appeared to be a policy shift, Starmer Speaking during Prime Minister's Questions, he acknowledged the ongoing cost pressures facing pensioners. 'As the economy improves, we want to make sure people feel those improvements in their days as their lives go forward. That is why we want to ensure that, as we go forward, more pensioners are eligible for winter fuel payments.' He said the government will 'only make decisions we can afford' and will therefore look at this as part of a fiscal event.
