Energy Bills Set to Rise 6.4% in April – Is It Time to Fix?
Ofgem have announced the new energy price cap set to take effect on the 1st April 2025, and it’s going to be a steeper rise than expected!
Energy bills are set to rise by 6.4% come April, meaning this will cost a typical household an extra £111 a year bringing their energy bills as high as £1,849 altogether. The cap affects around 22 million households in England, Wales, and Scotland. So, is it time to fix? We’re here to break it all down for you, including how LEAP (Local Energy Advice Partnership), our free energy advice service, can help you find the best tariff.
What Is the Energy Price Cap?
The energy price cap, set by Ofgem, limits the maximum amount that suppliers can charge per unit of gas and electricity. It’s designed to protect consumers from excessive prices, particularly those on standard variable tariffs. However, it’s important to note that the cap is not a total limit on your bill – actual costs depend on your usage. The cap merely restricts the price per unit and the standing charges.
Current Energy Price Cap and the April Increase
Currently, the energy price cap is set at £1,738 per year for a typical dual-fuel household paying by direct debit. This was an increase of £21 from the previous cap set in October 2024.
Ofgem have said rising wholesale costs and inflation are behind the latest hike, making this the third consecutive increase in the cap.
Should You Fix Your Energy Tariff?
Is now the time to fix? Put simply – YES!
Historically, switching suppliers was a common practice as this could lead to significant savings for households. However, in recent years, this wasn’t always the case due to the volatile energy markets caused by the pandemic, wars, and other global events. Because of this, almost every household is now on a standard variable tariff, governed by the price cap, which changes every three months. However, recent high caps and this latest rise will put additional pressure on household budgets, coinciding with increases in water and council tax bills in April. So now is the time to get off this price-capped tariff if you can.
Experts like Martin Lewis recommend that if you can secure a fixed deal, currently around 4% lower than the existing cap, it could be well worth locking in before April’s increase. Ofgem’s Chief Executive has also advised that, where possible, customers should consider switching or fixing to help manage rising costs.
LEAP Can Help You Fix and Save
We recognise the ongoing challenges that you may face in managing your energy bills. Every penny saved on your energy bills can help make a significant difference to your quality of life. That’s why we want to bring you as much support as possible help ease the burden.
We’re proud to deliver the LEAP service in partnership with Peterborough City Council, South Cambridgeshire Council, and Rutland County Council. However, LEAP is a nationwide service, so if you’re not in these areas, we recommend checking to see if it’s available where you live.
LEAP is a completely free energy advice service, helping you save money on your energy bills and stay warm during the colder months.
After you’ve applied for LEAP and your eligibility has been checked, the LEAP booking team will arrange for one of our highly skilled Home Energy Advisors to visit your home, at a time that suits you.
During the visit, they will conduct an energy assessment of your property, provide energy-saving advice, and install FREE energy-saving measures such as LED light bulbs, draught excluders, and more. They can even refer you to income maximisation services or assessments for larger energy efficiency measures and appliances.
Finding You The Best Energy Tariff
On a home visit, our advisor can help you find the best energy tariff and provide support in reducing your bills. They can review your current energy usage and help you assess whether switching or fixing is the best option for you.
Our goal is to ensure you’re on the most cost-effective plan available, potentially saving you hundreds of pounds each year.
LEAP Eligibility
You’re eligible if:
- You have a low income (less than £31,000)
- You receive universal credit
- You receive housing benefit
- You receive an income or disability related benefit
With the energy price cap set to rise in April now is the time to review your options. Don’t wait until your bills increase – take action now to secure a more stable and affordable energy plan.
ABOUT US
Green Energy Switch (GES) delivers a broad range of energy services across the UK; specialising in working with social landlords and local authorities. Established in 2006, GES is a subsidiary of environmental charity PECT. We gift-aid any profits to PECT to help fund their vital work. In doing so, we are the lead sponsor of their Forest project. So far over 117,000 trees have been planted, equating to a remarkable reduction of over 1,300 tonnes of carbon emission.
Sources/ Useful Links
When is the new energy price cap and how much will it rise? – Energy Live News
Fact check: Energy price cap is expected to rise by just under 10% in October | The Independent
What is Ofgem’s energy price cap 2024? – Uswitch
Predictions & Insights into the Default Tariff Cap (Price Cap) (cornwall-insight.com)
Is it time to fix your energy or stay on the Price Cap? (moneysavingexpert.com)
Energy price cap: Bills to rise by more than expected in April – BBC News
Martin Lewis: Energy bills to rise in April as new Price Cap is announced
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