Ofgem’s price caps announcements are expected throughout the year. Here is every date you need to be aware of and what you can do to prepare
Following the Ofgem price cap increase as we enter 2025, further blows to households are expected in Spring as a year of energy price changes await.
Although not all costs have yet been announced, you can pencil the key dates you should be aware of into your calendar now, ahead of time to help you budget and prepare.
As of January 1, the price cap increased by 1.2 per cent to £1,738 per year. The Ofgem price cap is updated every three months, and Cornwall Insight currently predicts it will rise to £1,783 a year – up almost 3 per cent.
On the April 1, July 1, and October 1, households will see a change in their energy bills. These caps are usually determined 4-5 weeks beforehand and can be found on the Ofgem website, with April’s announcement to be expected from the last week of February.
The price cap is used to show how much a typical family with a dual fuel tariff who pays via direct debit could expect to spend on their energy bill each year. But the exact amount you will pay each month will depend on your usage and can be higher or lower than the cap.
January 20 is the beginning of Energy Savers Week -dedicated to saving money on your energy bills. Homeowners should look for tips and incentives from energy companies during this week. Turning off standby. These include: turning off lights; using fewer laundry cycles, using a tap aerator, turning devices off at the socket and changing bulbs to LED models.
On February 5 the UK government will take part in the National Climate Change Conference 2025. Businesses and homeowners can hear the latest guidance and policies from the Labour government and keep an eye out for any changes that may be made in upcoming months.
From May 26 Ofgem is expected to announce the energy price cap for 1st July-30th September will be announced. Homeowners will discover if energy costs will increase or decrease and what they can be expected to pay. The week commencing September 1 is likely when Ofgem will announce the price cap for the last portion of the year starting October 1.
Starting from September 9 UK Savings Week begins and aims to encourage individuals to control their finances and prioritise saving. During this week, home owners should look out for tips on how to save money on their energy bills during the winter months.
James Longley, Managing Director of Utility Bidder, said: “In the past few years, energy prices have continued to be unpredictable and volatile. However, ensuring that you are aware of key dates in the upcoming year can help you budget for any energy price rises.
“Households should also look out for government incentives, grants and schemes that can help to ease any pressure if energy prices do rise.”
At the highest point, energy bills soared to above £4,000 in the winter of 2023, but households were covered by the temporary Energy Price Guarantee cap which saw energy bills capped at £2,500.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “The news of a rise in our forecast will be disappointing to households’ who will no doubt have been hoping for relief from recent cap rises. However, the turbulence in wholesale markets – a level of volatility we haven’t seen for months – reminds us to remain cautious of predictions, which could very well increase or decrease several times before the April cap is set.
There are several things you can do to ease the pain of a price cap rise, including heating system maintenance, installing double glazing and fixing any issues with insulation. Homeowners may also decide to shop around for a fixed rate that might be cheaper than the standard variable tariffs based on the cap.
