January 2025 Energy Price Cap

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For the period of 1st January 2025 to 31st March 2025 Ofgem has announced a rise in the energy price cap. This means the typical annual household bill will be around £1738 a year, an increase of £21 from the October-December figure of £1717 a year. This works out to be an increase of around 1.2%. It’s important to note that the annual consumption for a typical home is now calculated using lower figures than in 2023.  Compared to the same period in 2024 energy prices will be 10% lower.

The energy price cap is represented as an annual bill based upon 2700kWh of electricity and 11500kWh of gas usage per year. Most households are unlikely to be on a typical usage and the actual cost will vary depending on your consumption. Many households in Scotland are likely to have higher typical usage than the UK average due to our colder climate.

The Price cap is actually a cap on the tariff suppliers are able to charge you. This is the unit rate, the cost per kWh of energy you use and a daily standing charge.

 

Tariff Table

From 1st January the average tariff in the UK will be:

Please note costs can vary on region and may vary slightly from what is represented below

Information is extracted from the Ofgem website here.

 

Direct Debit

Electricity

24.31p per kWh unit rate & 64.16p per day standing charge

Gas

6.25p per kWh unit rate & 31.78p per day standing charge

 

Prepayment Meter

Electricity

23.49p per kWh unit rate & 64.16p per day standing charge

Gas

6.01p per kWh unit rate & 31.78p per day standing charge

 

Standard Credit

Electricity

25.59p per kWh unit rate & 70.15p per day standing charge

Gas

6.75p per kWh unit rate & 36.31p per day standing charge

 

Comparison to previous price caps

Compared to the same period in 2024 energy prices will be 10% lower. Many in the industry now believe the prices we’re currently seeing are the ‘new normal’ and will fluctuate around £1700-£1900 for an average household.

There is no longer any government support, last year’s Energy Bill Support Scheme ended and the Cost of Living payments have finished. So whilst prices are comparable, if you received this support last year, you may find your budget is still stretched. Older people may also no longer receive the Winter Fuel Payment unless they receive Pension Credit.

Households may be eligible for the Warm Home Discount.

 

Should I Switch?

Some suppliers may begin offering fixed price deals again, however as the price cap now changes every 3 months and it is difficult to predict how they will turn out it is difficult to say whether a specific deal is worthwhile taking.

We’d currently recommend checking out the Money Saving Expert guide which lists the pro’s and con’s of all currently available tariffs.

 

Get Advice

Are you worried about energy prices or debt? Our energy advisors can provide free and impartial advice to anyone in Fife. Get in touch to arrange a home visit or telephone advice appointment to see what you can do to save energy at home.

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