In case you missed the announcement, Ofgem announced today that the price cap will rise by 6.4% in April 2025, or £111, from £1,738 to £1,849.
This is unwelcome news, especially as all of the latest predictions were for a slightly smaller increase to just £1,823. Couple that with the fact that we are still expecting another increase in July and possibly one in October as well, it’s fair to say the energy crisis is far from over.
That being said, we do not have to sit an wollow.
Are you on a “Default” or “Standard Variable” Tariff?
Around 85% of the UK are on either a “Default” or “Standard Variable” tariff. These are the worst tariffs to be on. These are the tariffs whose prices are equal to the price cap at all times, so when Ofgem announces huge increases like this, it will actually affect you!
The best advice I can give is to move to a fixed rate tariff as soon as possible. And good news, a lot of energy suppliers have released some decent ones today. Here are the fixed rate tariffs released today (each is a link taking you to Uswitch for energy price comparison, click and compare to save money today):
- Uswitch Exclusive: British Gas Fixed Tariff v32 – Save £167 + £20 cashback! – 16 month contract – £50/fuel exit fee
- E.ON Next Next Fixed 16m v9 – Save £170 – 16 month contract – £50/fuel exit fee
- So Energy So Aspen Two Year – Save £170 – 24 month contract – £75/fuel exit fee
- OVO Energy Extended Fixed 25 February 2025 – Save £159 – 17 month contract – £75/fuel exit fee
Whilst moving to a fixed rate tariff today may only save you a small amount in March, it could save you up to £200 across the year, as well as protect you from further volatility in the price cap in 2025.
