Energy Bills and the Price Cap news from 2024
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- December 2024
Ofgem confirms standing charge will not be lowered
Ofgem has confirmed, after a year of consultation, that it will not lower the standing charge paid by energy customers regardless of how much energy they use.
Ofgem publishes consultation on a debt relief scheme for energy debt accrued during the energy crisis
Ofgem has opened a consultation on a one-off, time limited debt relief scheme for energy debt built up during the energy crisis, with responses due by 6 February 2025.
Ofgem consults on delivery, funding and eligibility options for an energy debt relief scheme
Ofgem has opened a consultation on whether to create an energy debt relief scheme, setting out delivery, audit, funding and eligibility options for support aimed at crisis-era arrears.
Ofgem consults on a one-off Energy Debt Relief Scheme
Ofgem consulted in December 2024 on a one-off Energy Debt Relief Scheme that could support up to 2.3 million customers and write off between £0.5bn and £1bn of crisis-era energy debt.
Ofgem launches energy price cap consultations
Ofgem opened consultations in December 2024 on the energy price cap, including one on supplier operating costs and debt allowances, drawing a response from the British Gas Energy Trust.
Ofgem published its Debt Strategy
Ofgem has set out how it will reset historic crisis debt, raise debt standards and reform debt management, with a Debt Relief Scheme expected to help up to 200,000 households.
- November 2024
Citizens Advice urges Ofgem to limit back-billing to six months for smart meter customers
Citizens Advice has called on Ofgem to cut the back-billing window to six months for smart meter customers, after helping with more than 52,000 energy billing problems in 2024.
Ember reports rising gas costs driving up GB electricity prices
Ember reports that gas prices rising through 2024 have pushed up the cost of gas-fired electricity in Great Britain and fed into the 1.2% increase in the energy price cap.
Ofgem sets price cap for 1 January to 31 March 2025
Ofgem has set the energy price cap for 1 January to 31 March 2025 at £1,738 a year for a typical Direct Debit dual fuel household, a rise of £21 or 1.2% on the current level.
EDF launches 12-month fixed tariff priced below the January price cap
EDF has launched a 12-month fixed tariff at £1,608 for a typical direct debit household, which it says is £130 below the level the January price cap is expected to reach.
The autumn 2024 energy price cap disclosure consultation closed
Ofgem's call for input on disclosure arrangements for the autumn 2024 energy price cap consultation closed on 20 November 2024, covering how models and data are shared with stakeholders.
Energy UK publishes Winter 2024 Commitment for household customers
Energy UK and 15 suppliers covering almost the entire market have published a Winter 2024 Commitment setting out financial help, debt advice and service standards for household customers.
Welsh Government announces additional £700,000 for Fuel Bank Foundation schemes
The Welsh Government has added £700,000 to Fuel Bank Foundation fuel voucher and Heat Fund schemes, bringing support for 2024/25 to £1.2m for households that pre-pay for energy.
Citizens Advice responds to Ofgem's Consumer Vulnerability Strategy Refresh
Citizens Advice has welcomed Ofgem's refreshed Consumer Vulnerability Strategy but pressed for stronger action on energy debt, back billing, the priority services register and standing charges.
British Gas Energy Trust reopens Energy Support Fund for winter applications
The British Gas Energy Trust has reopened its Energy Support Fund for winter, offering grants of up to £2,000 to British Gas customers in England, Scotland and Wales who are behind on their bills.
Another increase in the energy price cap announced
The energy price cap rose again in the latest announcement, with Energy UK and Ember both linking the increase to rising gas costs and setting it against the Government's Warm Homes Plan.
Social tariff working group established
The Scottish Government set up a social tariff working group in November 2024 to co-design a deliverable policy with suppliers and third sector organisations, and sent its recommendations to the UK Government in March 2025.
- October 2024
NEA responds to Autumn Budget 2024 warning on energy bills and debt
National Energy Action said the Autumn Budget will not reduce the effect of unaffordable energy bills or record energy debt this winter, warning of likely bill rises in January.
British Gas Energy Trust and Post Office launch winter pop-up events
The British Gas Energy Trust and the Post Office are running free drop-in pop-up events at post offices in seven UK cities this winter, offering budget planning, energy debt advice and grant access help.
Citizens Advice publishes Wales energy affordability research as price cap increases
Citizens Advice published research on 9 October 2024 showing households in Wales still need greater protection from high energy prices as the price cap rose, with thousands worried about falling behind on bills.
ECIU analysis finds EPC F homes pay £385 more than EPC C homes this winter
ECIU analysis published on 1 October 2024 estimates that homes rated EPC F will pay around £385 more for dual fuel this winter than homes rated EPC C.
Energy price cap set at £1,717 for typical annual consumption
Ofgem's quarterly price cap for October to December 2024 is set at £1,717 a year for a typical dual fuel household, 10 per cent above the previous level and 38 per cent above winter 2021-22.
Price cap changes allow suppliers 11% more profit on standard variable tariffs
The End Fuel Poverty Coalition says price cap changes from October let suppliers earn 11% more profit on standard variable tariffs, part of £483 billion in profits since the bills crisis began.
Public support for energy social tariff surges ahead of the Budget
Opinium polling for the Warm This Winter campaign puts public support for an energy social tariff at 75 per cent, up from 57 per cent before the General Election, ahead of the Budget.
Second phase of debt cost levelisation proposed no earlier than October 2024
Ofgem has opened a statutory consultation on levelling debt-related costs between standard credit and direct debit customers, with a second phase proposed no earlier than October 2024.
Speak, Seek, Save debt advice campaign launches for winter
Energy UK's Winter 2024 Commitment sets out supplier support for household customers from 1 October 2024 to 31 March 2025, alongside the Citizens Advice Speak, Seek, Save debt advice campaign.
- September 2024
Ofgem announces consumer energy debt has reached £3.69 billion
Ofgem has reported that consumer energy debt reached £3.69 billion, up £400 million in a quarter, with National Energy Action calling the record level hugely alarming.
Consumer Scotland responds to Ofgem standing charges options paper
Consumer Scotland has told Ofgem that shifting suppliers' fixed costs from standing charges to unit rates would penalise households with high essential energy use, including those in Scotland.
Charities report rising energy debt levels in Scotland
Charities funded by the British Gas Energy Trust report rising energy debt in Scotland, with Citizens Advice clients averaging £2,300 in arrears and rural cases reaching £3,000.
EDF launches cheapest energy-only fixed tariffs among major suppliers
EDF has launched a one-year fixed tariff at £1,649 and a two-year fixed tariff at £1,669, both below October 2024's £1,717 price cap, alongside a one-year tariff tracking £50 below the cap.
Individuals and Families Fund reopens with grants up to £1,700
The British Gas Energy Trust has reopened its Individuals and Families Fund, offering energy debt grants of up to £1,700 to British Gas and non-British Gas customers with credit or pre-payment meter arrears.
Domestic energy debt and arrears reached £3.82 billion
Ofgem has reported that domestic energy debt and arrears reached £3.82 billion in September 2024, a 91 per cent rise in two years, and has opened a consultation on debt standards.
Share Energy launches as newest Northern Ireland electricity supplier
Share Energy, based in Belfast, launched in September 2024 as the newest electricity supplier in Northern Ireland, claiming it will share half of future profits with customers.
- August 2024
ECIU analysis finds EPC band F homes face bills around £330 a year higher than band C under October price cap
ECIU analysis of Ofgem's October 2024 price cap finds homes rated EPC band F pay around £330 a year more for gas than band C homes, and around £630 more across both fuels.
Ofgem announces new price cap as NEA projects 400,000 more households in fuel poverty
Ofgem has set a new price cap taking a typical annual energy bill to £1,717 from 1 October, as National Energy Action projects 6 million UK households in fuel poverty.
Ofgem to confirm actual October price cap level
Ofgem was due to publish the actual October to December 2024 price cap on 23 August, with analysts and campaigners expecting a rise of around 10 per cent for a typical household.
Ofgem publishes standing charges options paper
Ofgem has published an options paper on reducing domestic standing charges by £20 to £100 a year and asked suppliers to offer no or low standing charge tariffs, with feedback open until 20 September 2024.
Ofgem sets price cap for 1 October to 31 December 2024
Ofgem has set the energy price cap for 1 October to 31 December 2024 at £1717 a year for a typical Direct Debit household, a 10% rise, and opened a consultation on standing charges.
Cornwall Insight predicts October price cap rise for typical households
Cornwall Insight has predicted that the October price cap will rise by around 10 per cent, adding approximately £150 a year to the bills of a typical dual fuel household, with Ofgem due to confirm the level on 23 August.
Nesta launches project on rebalancing energy levies
Nesta has begun an ongoing project examining how shifting policy levies between electricity and gas bills would affect UK households, with findings due to inform debate on cheaper electricity.
Ofgem published an options paper on ways to reduce standing charges
Ofgem set out options for cutting the daily standing charge in an August 2024 paper, part of a review that later produced a lower standing charge tariff requirement and a pilot.
Ofgem sets Quarter 4 2024 price cap at £1,717
Ofgem announced in August 2024 that the energy price cap for Quarter 4 2024 would be £1,717, an increase of £149 on the Quarter 3 2024 cap of £1,568.
Supplier allowed profit margins to rise 11% under new cap
Ofgem has raised the energy price cap by 10% from 1 October, taking a typical household bill in England, Scotland and Wales to £1,717, while the profit margins suppliers are allowed to make rise 11%.
- July 2024
Energy UK publishes policy proposals for affordable bills this winter
Energy UK has proposed funding energy efficiency schemes from general taxation, shifting policy costs onto gas bills and doubling the Warm Home Discount to cut household bills this winter.
Big Energy Credit Claim Back campaign set to end
The Big Energy Credit Claim Back campaign, which saw more than 20,000 customers reclaim unused credit from suppliers, ends on 1 July as households begin saving again for winter.
Energy Price Guarantee ceased applying to tariffs
The Energy Price Guarantee stopped applying to tariffs on 1 July 2024, ending the scheme that capped supplier rates and required landlords to pass on discounts to tenants.
- June 2024
Cornwall Insight forecasts October 2024 price cap rise to £1,724
Cornwall Insight forecasts issued on 28 June 2024 point to the Ofgem price cap rising by more than £150 to £1,724 from October, ending the summer's small reduction.
- May 2024
Citizens Advice responds to Ofgem's call for input on the future of domestic price protection
Citizens Advice has told Ofgem that time-of-use tariffs expected after marketwide half hourly settlement bring new risks, and that default tariff consumers still need protection.
Ofgem confirms energy price cap for July to September 2024
Ofgem has confirmed the energy price cap will fall by 7% from 1 July to 30 September 2024, giving a typical dual fuel direct debit household an annual bill of £1,568.
Ofgem price cap falls but bills remain far above pre-crisis levels
Analysis from the Energy and Climate Intelligence Unit finds average annual dual fuel bills remain around 40 per cent, or £450, above pre-crisis levels even as the Ofgem price cap falls.
NEA responds to DESNZ call for evidence on default energy tariffs
National Energy Action has told the government that the price cap's consumer benefits should be kept while reform tackles multi-rate meters and a social tariff is consulted on.
Ofgem opens consultation on energy price cap operating cost allowances review
Ofgem has opened a consultation on how it sets the operating cost allowances inside the energy price cap, covering core costs, debt, smart metering and industry charges, with responses due by 14 June 2024.
Big Energy Credit Claim Back campaign launched
The Warm This Winter coalition's Big Energy Credit Claim Back campaign drew more than 20,000 sign-ups and an average reclaim of £330, as polling found 68 per cent of bill payers want credit returned automatically.
Ofgem publishes benchmark maximum charges for Charge Restriction Period 12b
Ofgem has published the regional benchmark maximum charges for gas and electricity under the default tariff cap for Charge Restriction Period 12b, with all values given exclusive of VAT.
- April 2024
EDF launches Essentials 1Yr May25 fixed tariff
EDF has launched Essentials 1Yr May25, a one-year fixed tariff priced at £1,580, which it says is £110 below the current price cap and the cheapest offered by any large supplier.
Cornwall Insight projects price cap rise in Q4 2024 and Q1 2025
Cornwall Insight projections published by EDF show the price cap falling to £1,560 in Q3 2024, then rising to £1,631 in Q4 2024 and £1,634 in Q1 2025.
2024 Flexi Product variable charges take their 1 April 2024 values
ScottishPower has published the component unit rates and standing charges that make up its Flexi Product variable costs from 1 April 2024, with a second set of values shown for 1 October 2024.
Additional £735m energy debt charge takes effect under Ofgem rules
Ofgem's additional £735m bad debt allowance took effect on 1 April 2024, adding £28 a year to the typical household bill on top of £842m already charged.
Climate Change Levy main rates change for gas and solid fuels
From 1 April 2024 the main Climate Change Levy rate on gas rises to match the frozen electricity rate, with solid fuel rates raised proportionally and LPG left frozen.
Energy Price Guarantee replaced by levelisation scheme
The Energy Price Guarantee's prepayment unit rate discount was replaced on 1 April 2024 by a non-volumetric payment levelisation scheme that shifts costs between payment methods.
Gas network costs charged to households rise 38% from 1 April 2024
The estimated annual household contribution to running the gas network rose from £118.53 in 2021 to £163.69 from 1 April 2024, a 38% increase, according to a Warm This Winter report.
Market Stabilisation Charge to be removed
The Market Stabilisation Charge, a temporary levy paid between suppliers when customers switch, is to be removed in April 2024, Energy UK has said in an explainer on price cap cost recovery.
Ofgem began reviewing permanent removal of prepayment premium
Ofgem began work in April 2024 on options to remove the prepayment meter price premium for good, after a temporary ban on charging prepayment customers more took effect in July 2023.
Ofgem confirms technical changes to price cap wholesale model taking effect from April 2024
Ofgem has confirmed technical changes to the wholesale cost allowance model used to set the energy price cap, taking effect from April 2024, and decided against adjusting the cap for 2022 to 2023 wholesale costs.
Ofgem price cap from April 2024 puts poorly insulated homes around £340 a year worse off on gas bills
Analysis from the Energy and Climate Intelligence Unit finds that under Ofgem's April 2024 price cap, homes rated EPC band F pay around £340 a year more for gas than band C homes.
OVO electricity standing charge rises to 60.31p per day
A customer on the OVO community forum reports their electricity standing charge rising from 43.39p per day in 2023 to 60.31p per day from 1 April 2024, and asks why.
Prepayment meter standing charges levelled with Direct Debit under the price cap
From 1 April 2024 prepayment meter standing charges fall to the level paid by direct debit customers under Ofgem's price cap, ending the long-standing prepayment premium.
REMA update includes zonal pricing as an option for further consideration
Ofgem's discussion paper on the future of the default tariff price cap sets out options for reform, including zonal wholesale pricing, and asks for responses by 10 May 2024.
Standing charges rise as unit costs fall slightly from 1 April
Electricity standing charges rise 13% and gas standing charges 6% from 1 April 2024, while unit costs fall slightly, as analysis puts energy firm profits at over £420 billion since the crisis began.
Supplier switches must complete within five working days with £30 compensation
Ofgem rules in force from 1 April 2024 require energy suppliers to complete a customer's switch within five working days, with £30 compensation payable if the deadline is missed.
Temporary debt-related costs allowance introduced in the price cap
Ofgem introduced a temporary allowance in the price cap from April 2024 letting suppliers recover debt-related costs incurred between April 2022 and March 2024 above the permanent allowances.
Third £299 cost of living payment due in spring 2024
The final £299 instalment of the £900 means-tested cost of living payment is due in spring 2024, following £301 paid in spring 2023 and £300 in autumn 2023.
- March 2024
Energy price cap levels updated for 1 April to 30 June 2024 with standing charge levelisation introduced
Ofgem has set the default tariff cap for 1 April to 30 June 2024 at £1,690 for a typical Direct Debit household, down £238, and has levelled prepayment standing charges with Direct Debit.
Market Stabilisation Charge expired
The Market Stabilisation Charge expired on 31 March 2024, removing a levy that suppliers could previously apply when a household switched away from them during the energy crisis.
Ofgem publishes discussion paper on the future of domestic price protection
Ofgem has opened a discussion on whether the default tariff price cap needs reform, seeking views by 10 May 2024 on how household price protection should work as the retail market changes.
E.ON Next electricity prepayment emergency credit increased from £5 to £10
E.ON Next has raised emergency credit on most electricity prepayment meters from £5 to £10, with the increase still being rolled out and customers told by letter or email.
Chancellor confirms end of the Energy Price Guarantee
The Chancellor has confirmed the Energy Price Guarantee will end and left tariff reform out of the Spring Budget, closing the scheme that capped household unit rates.
Covid-19 cap amendment to end in March 2024
Ofgem's temporary amendment to the energy price cap, which allowed suppliers to recover additional costs incurred during the Covid-19 pandemic, runs until March 2024, Energy UK has said.
Energy Price Guarantee and cost of living payments to end
The Energy Price Guarantee and cost of living payments end on 31 March 2024, leaving the Household Support Fund as the only extended support and no new money for energy efficiency.
Energy Price Guarantee support to expire at end of March 2024
Ofgem has confirmed that Energy Price Guarantee support ends on 31 March 2024, replaced from 1 April by a levelisation allowance that cuts prepayment standing charges and raises Direct Debit bills slightly.
Ofgem publishes Future of domestic price protection discussion paper
Ofgem has published a discussion paper on the future of domestic price protection, asking whether the default tariff price cap should be reformed as the retail energy market changes.
- February 2024
Utility Warehouse launches Fixed Saver 15 and Fixed 15 fixed energy tariffs
Utility Warehouse has launched two fixed energy tariffs priced below both the January and April 2024 price caps, with the cheaper option requiring customers to move two other services to the supplier.
£28 bad debt cost added to annual bills for 12 months
Ofgem has added £28 to annual energy bills for 12 months within the April price cap to help suppliers recover bad debt costs, as the cap falls to £1,690.
Ofgem announces April-June 2024 price cap
Ofgem has set the April to June 2024 price cap, which the Resolution Foundation says will produce the second biggest percentage fall in consumer energy prices since the cap began in 2019.
Ofgem announces price cap level for 1 April to 30 June 2024
Ofgem has set the energy price cap for 1 April to 30 June 2024 at a typical dual-fuel annual bill of £1,690, a 12 per cent fall, with prepayment meters becoming the cheapest way to pay.
Ofgem decides not to adjust energy price cap for additional wholesale costs
Ofgem has decided not to adjust the energy price cap for differences between wholesale costs and allowances over October 2022 to September 2023, and will make two small technical changes to its wholesale allowance model.
Welsh Government publishes response to Ofgem call for input on standing charges
The Welsh Government has told Ofgem that standing charges should be abolished, that North Wales pays the highest in Great Britain, and that a social tariff is overdue.
British Gas launches Price Promise tariff priced below Ofgem price cap
British Gas has launched a fixed-rate Price Promise tariff at £1,699 a year for average dual fuel use, promising to beat the Ofgem price cap until at least July.
Government applies prepayment meter discount
The government has applied a discount on prepayment meters since February 2024 so that customers are not financially penalised for being moved onto one.
Ofgem allows involuntary prepayment meter installations to resume
Ofgem has confirmed that some energy suppliers may resume installing prepayment meters without household consent in early 2024, ending a pause on the practice.
Ofgem approves R0147 and confirms standing charge levelisation from 1 April 2024
Ofgem has confirmed that standing charges for prepayment meter and direct debit customers under the price cap will be levelled from 1 April 2024, accepting change proposal R0147.
Ofgem introduced the Float temporary debt allowance
Ofgem has opened a consultation on whether the temporary debt allowance it added to the energy price cap in February 2024, known as the Float, was set at the right level.
Ofgem levelisation decision opens potential phase 2 on debt-related costs
Ofgem has said it could consult on levelling debt-related costs between Standard Credit and Direct Debit customers, as part of a wider review of price cap operating cost allowances.
Ofgem lowers price cap by around 12% for domestic energy bills
Ofgem has lowered its price cap for domestic energy bills by around 12% from April 2024, but gas and electricity costs remain 60% higher than in 2021, according to the End Fuel Poverty Coalition.
Ofgem sets out contingency proposals for price cap methodology
Ofgem has set out more detailed proposals for amending the price cap methodology if legislation on an energy intensive industry exemption is not in place by 1 April 2024.
Price cap announcement applies discount to prepayment standing charges
The February 2024 price cap announcement applied a discount to prepayment standing charges, making prepayment slightly cheaper than standard credit for the first time.
- January 2024
Minimum Supply Prices from 1 February 2024 added
Government guidance for heat network support under the Energy Bills Discount Scheme was updated on 31 January 2024 to set out the Minimum Supply Prices applying from 1 February 2024.
Warm This Winter releases third Tariff Watch report on standing charges
Warm This Winter's third Tariff Watch report identifies 14 obscure charges inside the Ofgem price cap that it says have pushed electricity standing charges up 119 per cent since winter 2020/21.
NEA publishes response to additional debt-related costs allowance policy consultation
National Energy Action has published its response to the consultation on an additional debt-related costs allowance, saying record market debt and arrears of £2.6bn show households are falling behind on energy costs.
NEA publishes response to prepayment meter standing charges consultation
National Energy Action has published its response to the statutory consultation on prepayment meter standing charges and other debt costs, restating its long-standing call to remove payment premiums.
Coalition members call for social tariff in Spring Budget
End Fuel Poverty Coalition members called in January 2024 for a social tariff to be included in that year's Spring Budget, as part of a long-running campaign for energy tariff reform.
Consumer Scotland responds to Ofgem's Standing Charges Call for Input
Consumer Scotland has told Ofgem that moving standing charges onto unit rates in isolation would hit Scottish, disabled and electric heating households hardest, and that the regulator's own modelling does not justify the change.
UK energy debt reported at just under £3 billion
The British Gas Energy Trust has reported that the UK is in just under £3 billion of energy debt, as the price cap rose about 5 per cent on 1 January 2024.
Ofgem energy price cap to rise by 5% from January 2024
Ofgem's energy price cap rises 5% from 1 January 2024, taking a typical household bill from £1,834 to £1,928 a year, with prepayment and cash or cheque customers paying more.
Ofgem price cap from January 2024 puts EPC band F gas bills £415 above band C
Analysis by the Energy and Climate Intelligence Unit finds gas bills in EPC band F homes will average £415 a year more than band C homes under Ofgem's price cap from January 2024.
Ofgem price cap rises in January 2024
A quarterly Tariff Watch report from the Warm This Winter coalition says 14 obscure charges, passed through standing charges, are keeping electricity bills at record levels after January's price cap rise.
Price cap expected to rise around 1% in January 2024
Cornwall Insight expects the Ofgem price cap to rise by around 1% in January 2024 after European gas prices rose again, taking a typical annual bill to about £1,932.
Price cap increases on 1 January 2024
National Energy Action marked the 1 January 2024 price cap rise by saying 6.1 million UK households are now in fuel poverty, 1.6 million more than when the energy crisis began.
Record month for prepayment meter top-up help
Citizens Advice helped a record number of people who could not afford to top up their prepayment meter in January 2024, with energy debt also at record levels.