Since this report, Ofgem, the energy regulator, confirmed on November 22nd, 2024, that the price cap is set to rise 1.2% for Q1 January – March. This equates to £1,738, an average rise of £21 a year or £1.25 a month. Ofgem continued their press release by stating this is 10% cheaper than Q1 2024 (£1,928), and 57% less than Q1 2023 (£2,321). Although the BBC pointed out that bills are now 50% higher than pre-Covid levels.
The energy regulator advises customers to ‘shop around’ and evaluate all the options available. They are ‘urging customers to take advantage of the rising choice in the market and look for the best deal to help keep their household bills down’, as customers could save up to £140. The director general of markets, Tim Jarvis, said Ofgem ‘understands’ that energy costs remain a 'challenge’. Jarvis referred to external factors, including ‘events’ in Russia and the Middle East, to explain the fluctuation in energy prices.
Despite initial hope that prices will decrease, and the pressure of the cost-of-living crisis will alleviate, households are now preparing to strap their belts even further. Alex Belsham-Harris, Head of Energy Policy at Citizen Advice, released a statement which called the government to introduce energy bill support, and stated that without this ‘millions are at risk of being left in the cold this winter and beyond’.
Following the announcement, money saving expert, Martin Lewis, explained that some cheaper fixed tariffs are currently ‘around 5% LESS than the current price cap’. He advises households to ‘lock into a fix now to save money and guarantee no future hikes.’
