From 1 April 2025, the energy price cap in the UK will increase by 6.4%, raising the average annual bill for a typical household to £1,849.This change underscores the importance of enhancing your home’s energy efficiency to mitigate rising costs.
What Is the Energy Price Cap?
The energy price cap, set by Ofgem, limits the maximum amount energy suppliers can charge per unit of energy and standing charge for customers on standard variable tariffs. Reviewed quarterly, the cap reflects changes in wholesale energy prices, ensuring that consumers pay a fair rate that aligns with market conditions.
What’s Changing?
Effective from 1 April to 30 June 2025, the energy price cap will rise by 6.4%, increasing the average annual bill for a typical household to £1,849. This adjustment is primarily due to a recent spike in wholesale energy prices, which account for approximately 78% of the total increase.
How Can You Reduce the Impact?
To counteract the effects of rising energy costs, consider the following energy-efficient measures:
- Upgrade to Energy-Efficient Heating: Systems like Air Source Heat Pumps (ASHPs) consume less energy to heat your home, leading to long-term savings.
- Improve Home Insulation: Proper internal wall insulation (IWI), loft insulation, and room-in-roof insulation help retain heat, reducing the need for excessive heating.
- Generate Your Own Energy: Installing Solar PV panels allows you to produce your own electricity, decreasing reliance on the grid and lowering bills over time.
Support Is Available Through ECO4
For those concerned about rising bills, the ECO4 scheme offers free energy-saving home improvements to qualifying homeowners and tenants. Funded by major energy suppliers, this initiative ensures that eligible households receive energy-efficient upgrades at no cost, helping to combat rising expenses and enhance home comfort.
Take Action Today
With the energy price cap set to rise, now is the time to future-proof your home against increasing costs. At EnergySmart, we’re committed to helping households reduce energy bills, improve efficiency, and create warmer, more comfortable living spaces.