Energy Price Cap Increase

The energy price cap is set to rise by 1.2% starting January 1, leading to an increase in typical household bills by approximately £21 per year. This change follows a previous 10% increase, meaning the cost of energy will continue to remain high for consumers. The price cap updates every three months, and predictions indicate that even after slight drops in mid-2025, the costs will still be higher than the current rates. Understanding how these caps operate is crucial for households, as they only regulate the standard tariffs offered by energy companies.