Energy Bills and the Price Cap News: page 5
- June 2025
Ofgem proposes debt relief scheme opening in summer/autumn 2025 and closing in spring 2026
Ofgem has proposed a debt relief scheme for households that built up energy bill arrears during the energy crisis, open from summer or autumn 2025 to spring 2026.
- May 2025
Ofgem publishes updated price cap levels for 1 July to 30 September 2025
Ofgem has set the default tariff price cap for 1 July to 30 September 2025 at £1,720 a year for a typical dual fuel household paying by Direct Debit, down £129 or 7% from the previous level.
Ofgem extends prepayment meter warrant protections to 30 June 2027
Ofgem has extended the licence conditions that cap warrant costs and bar forced prepayment installation in exceptional cases, keeping them in force until 30 June 2027.
- April 2025
Energy Saving Trust publishes response to future default tariffs consultation
The Energy Saving Trust has told a government call for evidence that suppliers should be obliged to place households on default tariffs that suit their circumstances, and that the default price cap should be reformed.
Citizens Advice opposes Ofgem's zero standing charge price cap variant proposals
Citizens Advice has told Ofgem it does not support proposals for a zero standing charge variant of the energy price cap, citing complexity, implementation challenges and risks of consumer harm.
Consumer debt and arrears reached a record high of £3.85 billion
Ofgem's state of the energy market report records consumer debt and arrears at a record £3.85 billion in quarter 4 2024, alongside a price cap rise to £1,849 from April 2025.
EPC band F homes could face bills around £700 higher than band C from April
Analysis by the Energy and Climate Intelligence Unit finds EPC band F homes could face average annual dual fuel bills of around £2,340 from April, roughly £700 more than band C.
Standing charges change from 1 April with regional variation remaining
Ofgem's April price cap rise of 6.4% takes effect on 1 April 2025, with standing charges falling for most households but rising by up to £20 a year in some regions.
- March 2025
Ofgem energy price cap rises 6.4% and Clean Heat Market Mechanism launches
Ofgem's energy price cap rose 6.4% on 31 March 2025, the same day the Government's Clean Heat Market Mechanism began requiring large boiler manufacturers to sell a share of heat pumps.
Price cap for average dual fuel Direct Debit households increased to £1,849
Ofgem's price cap for average dual fuel Direct Debit households rose 6.4 per cent to £1,849 a year on 1 April 2025, a third consecutive increase driven by higher wholesale costs.
Consumer Scotland responds to Ofgem consultation on zero standing charge price cap variant
Consumer Scotland has told Ofgem that a zero standing charge price cap variant risks concentrating fixed costs in winter and may only benefit a limited group of low-usage households.
Energy UK publishes report on cutting energy bills
Energy UK has published a report setting out how household energy bills could be cut over five years, calling for a national strategy led by Downing Street or the Treasury.
Octopus pauses new sign-ups to Flux and Intelligent Octopus Flux tariffs
Octopus Energy has temporarily stopped new sign-ups and switches to its Flux and Intelligent Octopus Flux tariffs, citing volatile energy prices, with forum users reporting Snug has also been withdrawn.
Social tariff working group final report shared with UK Government
A Scottish Government working group on a social tariff for energy has sent its final report and recommendations to the UK Government, which holds the powers to implement one.
- February 2025
Debt allowance extension announced
Ofgem has extended the debt allowance that supports suppliers helping customers who struggle to pay, announced alongside a 6% rise in the price cap from April 2025.
Ofgem announces energy price cap increase for April to June 2025
Ofgem has raised the energy price cap by 6.4 per cent for April to June 2025, taking a typical household bill to £1,849 a year, and the government is consulting on a wider Warm Home Discount.
Ofgem confirms extension of the price cap debt-related costs Float allowance
Ofgem has confirmed it will keep the temporary debt-related costs allowance in the energy price cap at £31 per dual fuel customer until its operating costs review takes effect or September 2025.
Ofgem opens consultation on tariff without standing charge
Ofgem has opened an industry consultation on introducing a tariff without a standing charge, announced alongside a 6% rise in the price cap for April to June 2025.
Citizens Advice responds to Ofgem consultation on energy debt relief scheme
Citizens Advice has welcomed Ofgem's proposed energy debt relief scheme but wants it simplified, focused on crisis-caused debt and financed by energy networks at zero interest rather than by consumers.
Trust publishes response to Ofgem debt relief consultation
The British Gas Energy Trust has backed a targeted one-off energy debt relief scheme in its response to Ofgem's consultation, provided it forms part of a long-term affordability strategy.
Consumer Scotland publishes response to Ofgem debt relief scheme consultation
Consumer Scotland has published its response to Ofgem's consultation on a debt relief scheme, backing a Debt Guarantee and a shorter back-billing limit for households with smart meters.
Ofgem consultation on debt relief scheme closes
Ofgem's consultation on improving debt standards and on a proposed debt relief scheme closed on 6 February 2025, with decisions intended to be in place for next winter.
Ofgem announced it would fine suppliers breaching back billing rules
Ofgem said in February 2025 that it would fine energy suppliers that keep breaching its back billing rules, which limit how far back a supplier can charge for energy used.
Ofgem announces third consecutive price cap rise for April to June 2025
Ofgem has set the April to June 2025 Default Tariff Cap at £1,849 a year for a typical dual fuel household, a third consecutive rise and the first April cap above January's since quarterly updates began.
Ofgem launched a consultation on a zero standing charge option within the energy price cap
Ofgem has opened a consultation on a zero standing charge option within the energy price cap, setting out three ways to move fixed daily charges into higher unit prices.
Ofgem ran initial consultation on Debt Relief Scheme proposals
StepChange has set out its response to Ofgem's initial consultation on the proposed Energy Debt Relief Scheme, backing automatic eligibility and questioning conditions attached to debt write-off.
- January 2025
Ofgem opens Call for Input on the gas disconnections framework
Ofgem has opened a Call for Input on the gas disconnections framework, seeking views and cost data from industry and consumer stakeholders, with responses due by 7 March 2025.
Trust highlights open energy debt grant funds for winter
The British Gas Energy Trust has highlighted two open energy debt funds offering grants of up to £2,000 to British Gas and non-British Gas customers in England, Scotland and Wales this winter.
Energy debt reaches all time high of £4.15bn
Official figures show household energy debt in Great Britain reached an all time high of £4.15bn in the first quarter of 2025, as research puts 12.1 million UK households in fuel poverty.
- 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.