Ofgem Energy Price Cap Rises 10%—Here’s How to Fight Back

The temperatures are getting colder, and the energy bills are going up - and perhaps more than expected thanks to Ofgem’s energy price cap rising 10% from the 1st October 2024. 

Households across the UK are about to feel the pinch this winter if they don’t act now. The new energy price cap has increased to £17,17 for the average household, adding around £149 a year to energy bills. 

This cap impacts roughly 85% of homes in England, Scotland, and Wales on standard variable tariffs. If you’re not sure what tariff you’re on, chances are you’re on a capped tariff, meaning you’re likely paying more than you need to.

The price cap is tied to wholesale rates, which have fallen since mid-August. However, the cap is based on the wholesale prices from earlier this year, mid-May to mid-August, so households are set to pay higher rates from October through to December. 

So what can homeowners do? If you do nothing, your bills will rise by 10%, BUT there is a way to avoid this. Here’s what you can do to manage costs:

• Check Your Tariff: If you’re not sure what tariff you’re on, it’s important to check now. Most people on a default tariff will see their prices rise by 10%, but there are better deals available, including fixed-rate tariffs that could lock in lower prices.
• Use a Comparison Tool: It only takes a few minutes to compare energy prices using tools like the MSE Cheap Energy Club or other price comparison sites. 
• Consider Fixed Tariffs: Many energy suppliers are offering fixed-rate deals that take advantage of recent drops in wholesale energy costs. By switching to a fixed deal, you can avoid further price hikes and potentially save on your electricity bills this winter.
• Submit Meter Readings: To avoid being overcharged, make sure your electricity provider has accurate meter readings. This ensures you’re only billed for what you’ve actually used, rather than estimated at the higher rate.

Even though the cap might drop slightly in January, it’s likely to remain higher than the fixed deals available today. Taking a few minutes now to compare prices could result in big savings over the winter- it only takes a few clicks. It’s not too late to act—making the switch could keep your energy bills under control this winter.

Tags: News.