Most households in the UK are paying for their energy on a standard variable tariff, which is regulated by Ofgem’s Price Cap.

The “cap” is an upper-limit of how much our energy suppliers can charge us, per unit of energy we use (but the more we use, the more we pay). The Price Cap also determines the upper-limit of the daily standing charge our suppliers can charge us.

Ofgem currently announces any changes to the Price Cap 4 times per year, with the new prices taking effect on the 1st of January, April, July, and October.

Today’s (24th May) announcement confirms an expected drop, of around 7% in what we’ll be charged for each unit of energy we use from the 1st of July, to the 30th of September.

Source: Ofgem (https://www.ofgem.gov.uk/energy-price-cap)

Unfortunately, this gain is likely to be very short-lived, as Cornwall Insight (the leading industry analysts, and the company Martin Lewis uses for the predictions made by the Money Saving Expert website) is predicting a 12% rise when Ofgem announces the Price Cap for October-December. Realistically, we’re likely to be several years away from any chance of prices returning to pre-pandemic levels.

It is therefore vital that anybody struggling with the current cost of fuel notifies their energy supplier immediately, so any provisions available can be put in place.

Anybody in unaffordable arrears should seek advice as quickly as possible, preferably from an FCA accredited debt advisor, who can offer advice and support around all household debts.

To learn more about reducing bills by reducing energy usage at home, and maximising any grants available to increase your home’s energy efficiency, our Save Energy Advice Line is available 9am-5pm, Monday-Friday (aside from Bank Holidays, and the days between Christmas and New Year). Call free on 0800 043 0151, or email advice@epplus.org.