Search

Ofgem to announce January 2024 unit rates

Which? has said its published appliance running costs will be updated once Ofgem announces January 2024 unit rates, with those rates and the running costs expected to rise.

A newspaper on a kitchen table beside a model of energy bills and the price cap

Which? has said it will update the running cost figures on its website after Ofgem announces unit rates for January 2024, and that both the rates and the resulting running costs are expected to go up. The consumer organisation set out the position in a press release published on 9 November 2023, in which it warned that low purchase prices on some appliances can mask higher annual running costs1.

The announcement date given is 23 November, when Ofgem is due to publish the unit rates that apply from January 20241. Which? said the running costs shown on its site are calculated using the average electricity rate as set by Ofgem, and that its figures assume an electricity cost of 27.35p per kWh, with prices taken from November 20231. It also noted that its average running cost figures were based on an article published in August 2023, so those figures may be subject to change1.

The release listed appliances where the tested annual running cost exceeded the average for its category. Which? found the Hoover-HLEV10LG vented tumble dryer, retailing at £279, was the most expensive tumble dryer to run, with annual running costs surpassing £200, against an average of £147 for vented machines and £140 for condenser machines1. The Hisense RB327N4WW1 fridge freezer, retailing at around £399, was found to cost £113.12 a year to run, against an average of £81 for a freestanding model1. The Cookworks Plastic Kettle 825/6344 and 874/2119, priced at £7, was found to cost £50.74 a year to run, against an average of £23 for a kettle1.

ItemAnnual running costAverage running costRetail price
Hoover-HLEV10LG vented tumble dryer£200£82£279
Hisense RB327N4WW1 fridge freezer£113.12£81£399
Cookworks Plastic Kettle 825/6344 and 874/2119£50.74£23£7
Beko DIN15X20 dishwasher£88.89£78£279
Hotpoint H8 W946WB washing machine£86.22£65£499
Samsung NV7B41307AS built-in oven£79.47£64£439
Samsung UE43CU8000 television£29.57£24.82£369
Dimplex 3kW Rugged Fan Heater83p per hour55p per hour£79

Source: Which? table of results1. The table gives the Hoover dryer's average running cost as £82, while the text of the same release gives £147 for vented tumble dryers and £140 for condenser machines1.

Natalie Hitchins, Which? Head of Home Products and Services, said:

"When buying a new household appliance, don't be fooled by a low price point as this can mask bigger costs in the long run."
Which?, 9 November 20231

Manufacturers responded in the same release. A Hisense spokesperson said the RB327N4WW1 is an older model launched in 2019, that the figure quoted is higher than running costs stated elsewhere for it, and that under new EU regulations all F rated products are being removed from the market and it will be replaced with the E rated RB327N4WWE1. Beko said it had decided to discontinue F rated appliances and increase its A, B and C rated ranges1. Samsung said its products are built to be as energy efficient as possible1. Whirlpool declined to comment on the findings relating to the Hotpoint H8 W946WB, and Argos, Dimplex, Hoover and Samsung did not respond1.

Why it matters for households

Running costs, not purchase prices, determine what an appliance takes out of a household budget each year, and the gap between the worst and best performers in the same category is wide. Which? found the most energy-efficient heat pump tumble dryer costs £57 a year on average against more than £200 for the Hoover vented model, and the most efficient kettles cost £8 a year against £50.74 for the £7 Cookworks model1. For a fridge freezer running continuously, the difference between the tested £113.12 and the £40 achieved by similar models is £73.12 a year1. These figures feed directly into how much electricity a home draws from the grid, and therefore into how far a household can insulate itself from unit rate changes. The electricity and gas unit rates by region determine the price applied to each kilowatt hour, and the appliance running costs method converts consumption into annual figures. Which? also identified the Dimplex 3kW Rugged Fan Heater as using a lot of energy while switched on, calculating that four hours a day, seven days a week for 20 weeks could add up to almost £500 (£464.80)1.

What happens next

Ofgem is due to announce the January 2024 unit rates on 23 November 2023, after which Which? will update the running costs on its website1. Which? said unit rates, and hence running costs, are expected to go up1.

Sources1 cited
  1. Which? warns against buying ‘cheap’ appliances that rack up huge energy bills - including a £7 kettle that costs £50 a year to run - Which?, which.co.uk