Ofgem energy price cap to rise by 9% | Personal Finance | Finance
The average household energy bill is set to rise by nine percent in October when the latest change to the price cap takes effect, according to experts.
Energy consultancy Cornwall Insight said it expects the typical household’s energy bill to rise to £1,714 a year, up from £1,568 currently, on October 1.
This is lower than the June prediction, which estimated a 9.9 percent increase to £1,723. However, the group also expects a “modest” rise in January 2025, with potential further increases early in the year due to ongoing tensions in the Russia–Ukraine conflict.
The energy price cap, set by Ofgem and updated quarterly, limits the amount suppliers can charge per unit of energy but does not cap total bills, as charges are based on actual usage.
Despite the increase, Uswitch experts have found at least 10 tariffs that could be cheaper than the new cap, offering potential savings for those who shop around.
Richard Neudegg, director of regulation at Uswitch.com, said: “This prediction compounds the worry that energy bills are going to rise just as we reach the season to switch the heating back on. A predicted nine percent rise in energy costs would add £146 a year to the energy bills of the average household on a standard variable tariff.”
Mr Neudegg noted that, while the price cap is expected to rise again in January, bill payers “can take action now” to lock in certainty on how much they pay.
He said: “There are a number of 12-month fixed deals available at rates cheaper than today’s firm prediction, so run a comparison to see what energy tariffs are available to you.”
Cheapest fixed rate energy tariffs today
As of August 19, 2024, here are the cheapest energy tariffs available, according to Uswitch.
The cheapest offer today is Outfox The Market’s Fix’d Dual Aug24 v3.0 tariff with an average annual bill of £1,568, saving £146 against the cap. This tariff has a £25 exit fee per fuel and is available directly via Outfox The Market.
OVO Energy provides the One Year Fixed 19 August 2024 tariff, with an average bill of £1,627. This represents a saving of £87 against the cap. There is a £50 exit fee per fuel, and it is available exclusively through Uswitch, Confused.com , and OVO.
Octopus Energy offers the Octopus 12M Fixed August 2024 v2 tariff, with an average annual bill of £1,628, saving £86 against the cap. There are no exit fees, and it is available directly via Octopus.
Co-Op Energy has the Co-Op 12M Fixed August 2024 v2 tariff, with an average bill of £1,628, saving £86 against the cap. This tariff has no exit fees and is available directly via Co-Op Energy.
E.ON Next provides the Next Fixed 12m v23 / E.ON Next Gust 12m v8 tariff, with an average annual bill of £1,660, saving £54 against the cap. There is a £50 exit fee per fuel, and it is available directly via E.ON Next.
British Gas offers the Fixed Tariff 12M v9 tariff, with an average bill of £1,660, saving £54 against the cap. This tariff has a £50 exit fee per fuel and is available directly via British Gas.
Sainsbury’s Energy provides the Sainsbury’s Fix and Reward Fixed 12 v23 tariff, with an average annual bill of £1,690, saving £24 against the cap. There is a £50 exit fee per fuel, and it is available directly via Sainsbury’s Energy.
Co-Op Energy has the Co-Op Community Power 12 Fixed August 2024 v2 tariff, with an average bill of £1,693, saving £21 against the cap. This tariff has no exit fees and is available directly via Co-Op Energy.
OVO Energy offers the One Year Fixed + Greener Electricity 19 August 2024 tariff, with an average annual bill of £1,707, saving £7 against the cap. There is a £75 exit fee per fuel, and it is available directly via OVO.
Finally, EDF provides the EDF Essentials 1Yr Aug25v3 tariff, with an average bill of £1,708, saving £6 against the cap. This tariff has a £25 exit fee per fuel and is available through Uswitch and EDF.
