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February 2025
Energy Price Cap Increase from April 2025: What You Need to Know
The energy price cap in Great Britain is set to rise by 6.4% from 1st April 2025, increasing the average annual household energy bill from £1,738 to £1,849. This change, announced by Ofgem, the energy regulator, is largely driven by rising global wholesale energy prices.
Understanding the Energy Price Cap
The energy price cap limits the maximum amount energy suppliers can charge consumers on standard variable tariffs for each unit of energy and daily standing charges. For the period from 1st April to 30th June 2025, the average rates are:
Electricity: 27.03 pence per kilowatt-hour (kWh) with a daily standing charge of 53.80 pence.
Gas: 6.99 pence per kWh with a daily standing charge of 32.67 pence.
These rates vary across England, Scotland, and Wales due to regional differences.
Tips to Reduce Your Energy Bills
With energy costs on the rise, here are some practical ways to lower your household energy consumption and keep your bills in check:
Adjust Your Thermostat: Lowering your thermostat by just 1°C can cut heating bills by up to 10%.
Optimise Boiler Settings: Reducing the flow temperature on combi boilers to 60°C or below can improve efficiency and save money.
Draught-Proof Your Home: Sealing gaps around windows, doors, and floors can prevent heat loss and save around £80 annually.
Switch to LED Lighting: LED bulbs consume less electricity and have a longer lifespan, helping to reduce energy costs.
Use Appliances Efficiently: Wash clothes at 30°C and reduce usage by one cycle per week to save approximately £24 annually. Air-drying clothes instead of using a tumble dryer can save an additional £50 per year.
Take Shorter Showers: Limiting showers to four minutes can save a typical household £60 annually.
Unplug Standby Appliances: Turning off devices when not in use prevents them from consuming standby power, contributing to lower bills.
Install a Smart Thermostat: Smart thermostats offer precise control over heating schedules, helping to avoid unnecessary energy use.
Regular Maintenance: Keeping heating systems and appliances well-maintained ensures they run efficiently.
Consider Renewable Energy Solutions: Investing in solar panels or other renewable energy options can reduce reliance on grid electricity and lower long-term costs.
By implementing these tips, you can mitigate the impact of the upcoming price cap increase and enjoy a more energy-efficient and cost-effective home.
