Households with heated towel rails face £57.18 charges from July 1 | Personal Finance | Finance
Under the incoming price cap, electric heated towel rails could be costing some households in the UK around £57 when the cost is projected over 12 months, according to calculations by The Express. Last week, Ofgem announced the energy price cap would be increasing by 13% for the period covering Monday, July 1 to September 30, 2026.
The cap refers to the default tariff applied when a customer isn’t on a fixed-rate tariff. Set by the regulator, it establishes a maximum rate per unit and standing charge that can be billed to customers for their energy use (both electricity and gas). Ofgem said the increase is a “result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East“, with fuel and other costs skyrocketing in the wake of the US and Israel‘s late February strikes on Iran. The rise factored into the cap largely is made up by the surging price of gas, but electricity has risen by around 5% too.
From July 1, people in England, Wales, and Scotland on a standard variable tariff, and who pay for their electricity via Direct Debit, will pay 26.11p per kilowatt hour (kWh) on average, significantly higher than the current April price cap (24.67p per kWh).
It means you may have costlier electricity bills next month, and many Britons will be looking into costs associated with individual appliances to work out where savings can be made.
Some devices, like heated towel rails powered by electricity, are surprisingly energy intensive. Most heated rails are connected to the central heating, rather than your mains, while some will be a hybrid of the two.
However, many Britons will have electric versions, as they can be used in summer without turning on the heating for the whole home, as well as being less costly, and easier to install.
Elegant Heat, a UK specialist in various heating appliances, previously estimated that moderate household use is around 2 hours per day for a light user, taking into account use in the morning and evening.
Wattages will vary depending on the model and size of the appliance. But for the sake of estimating costs throughout the year, let’s assume we’re talking about a fairly standard 300-watt model.
If we plug that into Smart Money Tool’s Electricity cost calculator, we see that, based on that level of usage, it would cost around £0.15 per day, and £4.50 per month under the current April 1 cap (£54.03 when the cost is projected over 12 months).
Under the July cap, that level of usage would rise to around 16p per day, £4.77 per month, and £57.18 if projected over 12 months.
However, that assumes constant electricity usage for the two hours. Some models have thermostats which save power once the rail has reached a certain temperature, slashing costs by half, Elegant Heat says.
That suggests using one with a thermostat could cost around £2.38 per month (around £28.59 when projected over a year).
However, the costs will obviously vary depending on the amount of use the heated towel rails get, and what model you have.
And while the estimate gives you an illustrative sense of the costs the cap represents over a longer period, the maximum limit on unit rates and standard charges is reviewed by the regulator every three months and doesn’t remain in place for a full year.
You also have to take into account the daily standing charge for using electricity when working out costs. The flat fee covering all the electricity you’re using will decrease slightly to 57.19p per day from July 1.
Households can protect themselves from price cap hikes by getting on a fixed rate deal that can shield you from global shocks over a set period.
