Energy regulator Ofgem has announced a 1.2% increase in the energy price cap for January-March 2025, raising average household bills by £21 per year or £1.75 per month for those paying by direct debit.
The new cap sets the average annual dual fuel bill at £1,738, reflecting a decrease of 10% compared to the same period in 2024 and 57.2% lower than during the peak of the energy crisis in 2023.
Ofgem highlights an increase in cheaper fixed tariff options, with some deals offering savings of over £140 annually compared to the price cap.
The regulator urges customers to explore the growing market for tariffs that could better suit their needs, particularly those with low energy usage who may benefit from low or no-standing charge options.
Switching payment methods could also save households money, with direct debit payments costing around £100 less annually than standard credit payments.
Additional support is available for customers facing difficulties, including affordable payment plans, access to hardship funds, and energy saving advice.
