UK TO RISE ENERGY PRICE CAP BY 1.2 PCT

Tue 26 November 2024:

The United Kingdom’s (UK) energy price cap is set to increase by 1.2 percent from January to March 2025, the UK’s energy regulator announced on Friday.

This adjustment is expected to add approximately 21 pounnds (26 U.S. dollars) annually, or 1.75 pounds monthly, to the average household energy bill, said the Office of Gas and Electricity Markets (Ofgem).

For households paying by Direct Debit for dual fuel, the new cap equates to an annual rate of 1,738 pounds. This figure remains 10 percent lower than the same period in 2024 and is 57.2 percent below the peak recorded during the energy crisis in 2023, according to Ofgem.

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Introduced in January 2019, the energy price cap is reviewed periodically by Ofgem to strike a balance between allowing energy suppliers to recover efficient costs and shielding consumers from excessive charges.

“While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households,” said Tim Jarvis, director general of markets at Ofgem. He stressed the impact of global market volatility on energy prices and emphasized the importance of building a renewable, domestic energy system to reduce costs and enhance stability.

Ed Miliband, UK Secretary of State for Energy Security and Net Zero, expressed concern about the impact of the cap increase on families struggling with the cost of living. “The rise in the energy price cap will cause concern for families… That is why the government will do all we can to help people. As long as Britain remains exposed to the rollercoaster of global fossil fuel markets, we will be vulnerable to energy price rises over which we have no control,” he said on the social media platform X.

Miliband reiterated that advancing the UK’s clean energy agenda is the key to achieving cheaper and more secure power, highlighting the government’s focus on renewable energy as a long-term solution to mitigate price volatility and support households. (1 pound = 1.25 U.S. dollar)

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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