When does the next energy price cap come into effect?

On Friday 22nd November, Ofgem is set to announce the next energy price cap for the period between 1st January to 31st March 2025.

The price cap ensures that energy prices for customers on standard variable tariffs, including those paying by Direct Debit, standard credit, prepayment meters, or Economy 7 meters, remain fair and reflective of energy costs.

The cap is based on typical household energy usage, which is regularly reviewed by Ofgem.

The current energy price cap is £1,717 per year for a typical household.

Predictions from Cornwall Insight suggest a slight reduction in January 2025.

According to their forecast, the cap could decrease by 1%, to an average of £1,697 annually for a typical dual fuel household.