Latest news with #EnergyPriceGuarantee
Daily Mirror
01-07-2025
- Automotive
- Daily Mirror
New driveway rule in force from today as motorists are warned
The new price cap comes into effect from tomorrow morning, so if you haven't already, it might be worth checking to see if you could save money by switching to a fixed-term deal now Major changes to UK driveways are set to kick off from today, with a stark warning for over a million electric vehicle (EV) owners. Those who charge their EVs at home need to be aware of the new Ofgem price cap that are now in effect. David Watson, CEO of Ohme, a company specialising in smart home chargers for EVs, 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. READ MORE: Pet owners rush to claim free flea treatment as UK heatwave sees pests rise "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." Ofgem, the industry regulator, has announced that starting from 1 July 2025, the price cap for the average dual-fuel household paying bills by Direct Debit will be £1,720. This rate represents a £129 (or 7%) reduction from the current annual rate of £1,849. Yet, it's important to note that this new cap is still 34% above the rates before the energy crisis. Therefore, while the reduction is welcome, it must be viewed within the broader context, reports Yorkshire Live. Additionally, since July 2024, when the cap was lowered to £1,568 – the lowest point since the onset of the crisis – there hasn't been a further decrease. Ben Gallizzi, senior content editor at Uswitch, said: "The price cap will drop by 7% 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." In October 2022, when Ofgem's price cap level was expected to rocket to £4,279 by January 2023, the government intervened with the Energy Price Guarantee as a buffer for households grappling with escalating energy costs. Designed as a "safety" price cap, it was initially pegged at £2,500 annually (subsidised by the government) for an average use dual fuel customer. Come May 2023, Ofgem and government officials announced that the Energy Price Guarantee would be hiked to £3,000. This measure has since been scrapped entirely.
Yahoo
25-02-2025
- Business
- Yahoo
Energy bills set to rise by average of £111 to £1,849 a year from April
Energy bills for millions of households are set to go up by a bigger than expected 6.4% from 1 April. Industry regulator Ofgem said the cap on gas and electricity prices would have to rise largely because of higher wholesale energy prices caused by cold weather and a shortfall in renewable generation. It will add around £111 to the average household bill, or about £9.25 per month, increasing it to £1,849. The new cap covers the three month period to July when it will be set again. Ofgem set a limit every quarter on tariffs that energy suppliers can charge households on standard variable or default deals. The new level of average bills is 9.4% or £159 higher than this time last year, but £531 lower than at the height of the energy crisis at the start of 2023, when the Energy Price Guarantee was in place. About three quarters of the rise is linked to wholesale gas prices. Jonathan Brearley, CEO of Ofgem, 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. ' The government said it is consulting on an expansion of the Warm Home Discount, giving eligible households £150 off their energy bills. This would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to an estimated 6.1 million. Energy Secretary Ed 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. 'This is a Government that will always stand up for working people. '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.' The increase, the third consecutive quarterly rise, is bigger than expected by analysts. Last week leading consultancy Cornwall Insight predicted a rise of 5% adding around £85 to average bills. Today Cornwall Insights said: 'The first two winters after Russia's invasion of Ukraine were unusually mild. 'However, this winter marked the return of typical cold conditions. Coupled with low renewable energy production across Europe and decreasing gas reserves, this has led to a rise in wholesale prices, which has impacted the April price cap. 'While the news that prices are due to rise will not be welcomed, the impact will be tempered by reductions in household energy use as we move into the summer months.' Wind and solar energy production were depressed by long periods of so called dunkelflaute conditions with overcast skies and little wind, which depresses generation of wind or solar power. The analysts said there were signs that the cap might come down slightly in the summer as gas prices ease on hopes of a truce in Ukraine. Ofgem's Brearley added: '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.' Emily Seymour, Which? Energy Editor at consumer group Which?, said: 'The news that the energy price cap will rise by 6.4 per cent in April and is predicted to continue rising over the next year will understandably be worrying for many households. 'It's well worth shopping around for energy deals to see if you could save money by switching. Unfortunately, there's no 'one size fits all' approach when it comes to fixing an energy deal - the best option for your home will depend on your individual circumstances. 'You should compare what your monthly payments would be on a fixed deal with what you'd expect them to be if you remain with the price-capped variable tariff to see what the best option is for you. '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. ' Dame Clare Moriarty, chief executive of Citizens Advice, said: 'We're helping people every day who simply can't afford this latest price hike. It comes as our research shows the number of people living in a household in debt to their energy supplier has reached a new high of nearly seven million. '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.'
