Go.Compare energy expert comments on the new OFGEM energy price cap rise

With the announcement that the energy price cap is rising by 6.4%,* and increasing from £1738 per year to £1849, millions of UK households are facing growing concern over the rising cost of their energy bills.

The increase will be yet another unwelcome challenge for many homeowners and renters already under financial pressure, and is 9% higher than the price cap set for the same period last year (1 April to 30 June 2024).

As the UK grapples with these rising costs, many households, particularly those on variable or flexible energy tariffs, will see a noticeable increase in their monthly energy expenditures, potentially adding stress to already strained budgets.

Gareth Kloet, spokesperson for Go.Compare energy, commented on the news: "The latest rise in the energy price cap is undoubtedly going to create more pressure on household finances across the country, with many families already feeling the strain .

“Many may be wondering why the decision has been taken to increase the price cap. Importantly, the energy price cap is a reflection of what it costs suppliers to provide our homes with energy, so if costs to the UK market rise, this is likely to be reflected in the price cap. In recent months, the price of natural gas has been trending upwards, so this is one key reason for the latest price rise.

“With the new energy price cap coming into effect on April 1st, we would encourage customers to review their energy options and consider the best plan for their individual circumstances. When it comes to switching providers, there are options available which could potentially help save you money.

“It’s well worth researching the deals available as there are many options out there, and some could save you money – whether you decide to opt for a fixed-rate tariff so you aren’t affected by energy price fluctuations, or you opt for a variable rate.

“We recommend looking closely at your contract before making a change, as your current energy provider may charge you an exit fee and this will need to be taken into consideration when working out any potential savings – though it may still be worth switching.

“Take time to look at your current tariff, your average energy use and your monthly costs and look on a comparison website to see if a cheaper option is available. It’s also a good idea to take a meter reading at the start of each month, even if you have a smart meter, as it will ensure your energy usage is as accurate as possible.”

For more info on how to switch energy providers, Go.Compare have put together a guide which you can find here.

Here’s some tips to help reduce energy bills and manage costs:

1. Reduce unnecessary energy use: Avoid running appliances such as washing machines and dishwashers during peak hours when electricity prices may be higher.
2. Invest in a smart thermostat: It could help control heating costs by adjusting temperatures automatically.
3. Review your tariff: Consider switching from a flexible tariff to a fixed-rate plan if you’re worried about price fluctuations.
4. Switch suppliers: Compare energy tariffs to find the best deal for your needs. Switching suppliers could lead to a cheaper rate or better service.
5. Upgrade to energy-efficient appliances: Use appliances that need a minimal amount of energy. Also, ensure your home is well-insulated to prevent heat loss. Simple actions like switching off lights when not in use or using energy-saving bulbs can make a difference.

For more energy savings tips, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-saving-tips/