- Cornwall Insight has predicted that a typical dual fuel household will pay £1,736 per annum, a 1% increase
- Ofgem is undergoing a comprehensive review of the price cap
- It’s predicted there will be a small drop in April 2025 and again in October 2025
The Energy Price Cap (EPC) will likely rise by 1% between January and March 2025, meaning a typical dual-fuel household could pay as much as £1,736 a year, according to energy intelligence firm Cornwall Insight.
Speaking on BBC’s Today programme, Dr Craig Lowrey, principal consultant at Cornwall Insight, predicted that Ofgem will hike up the EPC from its current level of £1,717 when it makes its announcement on 25 November.
Lowrey said the “cap level is a reflection of a relatively volatile wholesale market, influenced by supply concerns tied to geopolitical tensions, maintenance on Norwegian gas infrastructure and weather disruptions”.
It’s predicted there will be a small drop in April 2025 and again in October 2025.
“Given that higher prices are likely the new normal, it’s important the government look at ways to protect the vulnerable from high energy bills,” Lowrey continued.
“Whether this be through social tariffs, to bring energy in line with telecommunications, changes to the benefit system, or review the price cap mechanism.”
Ofgem is undergoing a comprehensive review of the price cap, offering potential changes to certain areas, such as predicted standing charges over 2025.
“Recent policy initiatives show the government is recognising the last solution to high energy bills lies in reducing reliance on the international wholesale market by transitioning to UK-produced renewables.
“While there will be upfront costs, this shift is essential to building a sustainable and secure energy system for the future. We hope to see increasing progress on the renewables transition over the next few years,” concluded Lowrey.
