Ofgem’s energy price cap is set to rise next week

The price ceiling changes every three months, in January, April, July and October. It is largely based on the costs that suppliers face to deliver energy.

The energy price cap is expected to rise by a further one per cent in April 2025, according to analysis by Cornwall Insight, meaning a typical dual-fuel customer would pay £1,762 a year.

This would be on top of the one per cent increase confirmed by the energy regulator, Ofgem, to take place in January. This will see the price cap rise to £1,738.

While the increase affects millions of UK households, experts stress that actual bills will vary based on individual energy consumption patterns.

Andy Kerr, founder at BOXT said: “Ofgem’s price cap sets the maximum that suppliers can charge per unit of energy.

“Consumers should remember that Ofgem’s price cap does not indicate the maximum a household will pay on their energy bills and they should be aware of their consumption to avoid receiving an unexpectedly expensive bill.”

Energy experts recommend that although consumers cannot influence the ceiling itself, they can take steps to reduce their consumption and manage costs effectively. The actual amount paid depends on several factors, including meter type and payment method.

Kerr outlined several practical measures to help households reduce their energy consumption.

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Upgrading to a modern A-rated condensing boiler can significantly improve efficiency, as older models can have ratings as low as G.

Maintaining optimal temperature settings between 18-21 degrees is essential, with smart thermostats offering remote control options.

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Installing thermostatic radiator valves allows for room-by-room temperature control, reducing overall energy consumption. Basic maintenance like bleeding radiators can improve efficiency by removing trapped air.

Proper insulation is essential, with simple solutions such as a £15 hot water tank jacket offering immediate benefits.

In winter, experts recommend keeping the heating at a minimum of 10 degrees, even when you’re away, to prevent costly frozen pipe damage. These measures can help offset the impact of rising energy costs while improving home efficiency.

In order to achieve long-term energy savings, households are encouraged to consider renewable heating solutions. The Government’s Boiler Upgrade Scheme is now offering a £7,500 grant to make heat pumps more accessible to families.

When installed correctly, heat pumps can deliver three times more heating energy than they consume, leading to reduced emissions and lower bills.

Solar panels present another sustainable option despite significant upfront costs. Households can save up to £91 a month or £1,096 a year on their electricity bill by installing solar panels.

Solar technology works by capturing light rather than heat, ensuring continued energy production even in the winter months. These renewable solutions can help reduce dependence on traditional energy sources, making households less vulnerable to future price cap changes.

Kerr continued: “While there are steps consumers can take to monitor their consumption, global energy costs are beyond their control.”

Underlining the need for nationwide changes to energy policy, he says: “Because of this, the UK needs to invest effort in helping consumers make their homes more energy efficient by investing more in sustainable energy sources.”

The BOXT founder is calling for greater government intervention to support the transition to renewable energy.

He added: “In addition to the price cap, the government must work towards improving the availability and affordability of alternative energy sources such as heat pumps and solar panels to reduce household energy bills in the long term.”