The January energy price cap for 2025 will be officially announced on November 25th, but experts are already predicting a rise in energy bills for millions of customers.
Energy regulator Ofgem adjusts the Energy Price Cap every three months based on wholesale energy costs. Industry analyst Cornwall Insight predicts that the new price cap will be an increase of around 1% on current levels.
What is the energy price cap?
The energy price cap is the maximum energy providers can charge their customers on standard variable tariffs. While it’s expressed as an annual total for the average household, your tariff is actually a per-unit price and daily standing charge.
Your bill is then calculated based on the amount of energy you use. Therefore, if you use more energy than the average household your energy bill can be higher than the price cap.
Who sets the energy price cap?
The energy price cap is set by the UK’s energy regulator Ofgem. It provides average figures for unit rates and standing charges, as well as specific regional pricing.
How often does the energy price cap change?
The energy price cap is adjusted every three months, on the 1st of January, April, August and October. The new price cap figures are announced approximately five weeks before the cap comes into effect.
The January energy price cap for 2025 will be confirmed by Ofgem on November 25th.
What will the January energy price cap for 2025 be?
Although the new price cap won’t be confirmed until November 25th, industry analyst Cornwall Insight has already published its prediction, a rise of around 1%. This would see the average energy bill for households go from from £1,717 a year to £1,736, a rise of £19 or around £1.58 a month.
This follows a 10% rise in the October energy price cap. Experts had originally predicted energy prices would fall in January, but now expect them to continue to trend upwards.
As we look further ahead, predictions become less accurate. However, expectations are that the price cap will stay largely stable, falling slightly in April and rising again in July.
How can I protect myself from price cap jumps?
You can easily protect your bills from price cap hikes by switching to a fixed-rate energy tariff. Under these tariffs, your per-unit costs and standing charges are fixed for the duration of your contract. You’ll still be charged for the energy you use, and you won’t be affected by changes to the the price cap.
Looking for a quote for a great value tariff that will save you money on your energy bills? Book a call with our Connections Experts today. Switching is free, simple and quick, and you can protect your energy prices in just a few minutes.
