As the calculation period for the Price Cap, effective 1st January 2025, has now closed, we take a look at what to expect to be formally announced.
As we have advised for some weeks, the wholesale markets have been volatile this period and this will impact the early forecasts of a reduction compared to the current October 2024 cap.
Unfortunately we expect a small increase to the current cap level of £1,717 to £1,732 – at a ‘headline rate’. That is for the typical user using dual fuel and paying by direct debit.
Regional variances apply, as does the impact of how you pay – but most importantly the amount of energy you actually use for each fuel to determine your individual cost.
The increase represents around a 1% increase to the current cap level.
Ofgem will formally announce the final numbers at the end of November.
Whilst it is far too early to say what will happen to the April 2025 price cap, with the current volatile market which remains at an elevated level, it could be that further increases are seen to that of the January 2025 cap.