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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.
South Wales Argus
20-06-2025
- Business
- South Wales Argus
RTS energy meter switch off to be delayed, says Government
The move, which campaign group the End Fuel Poverty Coalition said was 'doomed for failure', was due to take place on June 30. In its place, the Department for Energy Security and Net Zero (DESNZ) said there will be a 'managed and more controlled start' to the RTS phaseout. As a result, they said, those with an affected meter will not face any unexpected disruption to their heating or hot water at the end of the month. What are RTS meters? The RTS system, used by older electricity meters to control heating and hot water, uses a longwave radio frequency to switch between peak and off-peak rates. The technology is becoming obsolete and energy companies had a deadline to change their customers' meters by June 30. However, firms have admitted that current rates of replacement meant it was likely that thousands of RTS meters would not have been upgraded before the technology is switched off. Energy UK, which represents firms, said 392,000 households still had the meters as of mid April. Industry regulator Ofgem has said the risks associated with not having a functioning meter include heating and hot water left continually on or off, electric storage heaters charging at the wrong time of day, possibly leading to higher bills, and the supplier being unable to confirm electricity usage during peak or off-peak times. Recommended reading: In a written statement on Wednesday, energy minister Miatta Fahnbulleh said the pace of RTS replacements by industry had been 'too slow', leaving 314,935 RTS meters still in homes as of May 30. She said: 'My department has worked to ensure industry will pursue a more controlled approach to the phaseout, beginning with a very small number of homes and businesses in carefully targeted local areas. During this process, Government and Ofgem will closely monitor supplier readiness to ensure the process is smooth and vulnerable consumers are identified and protected. 'These steps will help ensure suppliers are ready to respond quickly in case of any issues and that working families and the elderly are protected throughout the phaseout process. 'The Government is working closely with industry and Ofgem to ensure this next period is planned effectively and consumers, particularly those who are vulnerable, are protected.' She added: 'Suppliers will continue contacting consumers to book replacement appointments and consumers are urged to respond as soon as possible. 'In most cases, this will involve replacing the RTS meter with a smart meter, which can work in the same way as RTS meters, with automatic peak and off-peak rates, and the ability to turn heating and hot water systems on and off, ensuring minimal disruption to households. 'In advance of any phaseout activity in their area, households and businesses will be contacted by their energy supplier to inform them well ahead of time, if their meters will be affected.' Simon Francis, co-ordinator of the End Fuel Poverty Coalition, which wrote to Ofgem and the Government to raise concerns about the pace and communication of the meter replacement effort, said: 'The RTS switch-off process was doomed to failure after it became clear that the deadline was simply unachievable. 'Ministers are right to be getting a grip on the situation and holding Ofgem and the energy industry to account. 'We now need to see a plan published that sets out how the gradual switch-off will take place, including which regions will be affected and when. 'Crucially, we also need firm and binding reassurances that no customers will be left without heating or hot water, and that no household will face higher bills as a result of the changes.'
