LONDON: The energy regulator Ofgem announced on Friday, November 22, that the energy price cap will increase by 1.2% for the period from January to March 2025.

This change means that the maximum rate per unit and standing charge that can be billed to customers will rise by £21 per year for an average household, equating to about £1.75 per month.

For an average household paying by Direct Debit for dual fuel, this translates to £1,738 per year. Despite the increase, this amount is still 10% (£190) less than the cost for the same period in 2024 (£1,928) and 57.2% (£2,321) lower than during the energy crisis of January to March 2023.

Ofgem’s analysis also revealed that approximately 1.5 million households switched their energy tariff over the past three months. The regulator is encouraging customers to explore the growing number of options in the market to find the best deals and reduce their household bills. Currently, switching tariffs can lead to savings of up to £140.