Latest news with #energyPriceCap
Yahoo
11 hours ago
- Business
- Yahoo
Why you must take a meter reading on Monday - or risk being overcharged
Households are being urged to submit meter readings before the newly lowered Ofgem price cap comes into force on July 1 2025. Consumers should submit readings before midnight on June 30 to avoid being overcharged, and to ensure that smart meters are working properly. Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Martin Lewis' key Energy Price Cap changes advice Energy Price Cap warning for bill payers this summer The energy 'back billing' rules Martin Lewis wants you to share Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
The Herald Scotland
11 hours ago
- Business
- The Herald Scotland
Check your meter before Energy Price Cap changes on Monday
Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Ofgem latest debt figures signal that the UK's energy affordability crisis is nearing breaking point Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
Times
21-05-2025
- Business
- Times
What rising inflation means for savings and mortgages
Inflation has unexpectedly surged to its highest level since January last year. This could could delay further cuts to the base rate by the Bank of England, which would be a boost for savers, but not such good news for mortgage borrowers. The consumer prices index (CPI) rose to 3.5 per cent in April, up from 2.6 per cent in March. Core CPI, which strips out volatile components such as energy and food, climbed to 3.8 per cent from 3.4 per cent, while services inflation rose to 5.4 per cent from 4.7 per cent. This unexpected acceleration in inflation was caused by bill increases in April. These include council tax rates, water bills and a rise in the energy price cap that determines how much
South Wales Argus
03-05-2025
- Business
- South Wales Argus
Energy price cap update on zonal energy regional pricing
While this isn't new - the Energy Price Cap already has regional pricing for certain areas - Google searches for 'zonal energy pricing' have skyrocketed. Here's all you need to know about what a zonal energy pricing system could look like and how it could be implemented. So, what is zonal energy pricing, and who would be its winners and losers? Les Roberts, energy expert from Bionic, explains: 'Regional energy pricing, or zonal energy pricing, is set to be one of the biggest changes to the UK electricity market in over 35 years. 'The system, if approved by the government, is set to transform the UK's energy market, aiming to make the system more efficient by creating regional energy markets." What's going to happen to the energy Price Cap & is it worth getting a fix. Here are the latest predictions compared to the cheapest fix. The DOWN 8-9% July prediction is pretty solid, after that it's a bit crystal ball gazing. To find ur cheapest fix use — Martin Lewis (@MartinSLewis) April 30, 2025 What are regional energy markets? Regional energy markets are based on the cost of generating and transmitting electricity in each zone, rather than a blanket cost for the whole nation. 'In areas where renewable energy sources are in abundance already, such as Scotland, prices are set to fall by up to 8% in the proposed scheme," says Les. "However, in areas such as London and the South, where demand for electricity and energy is high and electricity often needs to be transmitted over long distances, prices are predicted to rise by 2.4% under regional energy pricing.' (Image: Bionic) Analysing the proposed zonal energy scheme, based on monthly utility bills for UK cities (electricity, heating, cooling, water, garbage) for 85m2 Apartment with percentages and proposed regional zones based on research provided by LPC Delta, Bionic has predicted which UK cities will benefit the most and the least from the regional energy pricing scheme. Birmingham would benefit most from the regional price increase, despite the new scheme proposing a predicted 2.4% increase in energy costs. London is set to rank 5th under the regional pricing scheme, with bills predicted to increase by 2.4%, taking the average monthly bill cost to £238.77. Surprisingly, Aberdeen is still set to have some of the highest utility bills in the UK, despite the proposed zonal energy scheme set to reduce costs by 8%. Les says: 'If implemented, regional energy markets are set to transform the UK's energy market, changing not just how much people pay, but also how and where new energy infrastructure is developed. The scheme is set to incentivise regional investment in clean energy projects and has the potential to accelerate the UK towards its 2050 net-zero target.' Recommended reading: What is the energy price cap and when does it change? The term is quite confusing, and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on 1 January 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. The next change is due to be announced later this month and come into force on July 1. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff. The energy price cap also sets a maximum daily standing charge.
