Research from landlord energy platform epIMS reveals how the new energy price cap that will be implemented this month is going to impact household energy bills, which regions are going to see the largest bill increase of all and simple steps that households can take to save nearly £400 a year on bills.
epIMS has analysed energy price cap data in the UK since Q1 2024, including the upcoming change for Q1 2025, before looking at what the new year’s cap rise might mean for the average annual household energy bill in each energy supplier region of the UK.
In Q1 2024, the energy price cap meant that the average annual household energy bill in the UK stood at a hefty £1,928. In Q2 and Q3, falling price caps meant that average bills reduced by -12.3% and -7.2% respectively, before rising again in Q4 2024 when a 9.5% increase put the average bill at £1,717 per year.
In January, the price cap is set to rise again which will put the average household energy bill at £1,738 – an increase of 1.2%.
REGIONAL PRICES
The upcoming price cap increase means that the average household energy bill is going to rise again, and some regions are going to see a bigger increase than others based on average energy usage and the suppliers operating in each location.
London is going to see the biggest increase. The average annual bill for electricity and gas in the capital currently comes to an estimated £1,735.10. But from January, the new price cap means the average bill will increase to £1,757.28 – a rise of 1.28%.
Homes in Eastern England are going to see an average price increase of 1.27% to put the average annual energy bill at £1,756.43, followed by the East Midlands (1.26%), Midlands (1.25%), Southern Scotland (1.25%), the South East (1.24%), and Yorkshire (1.24%).
SAVE MONEY
Craig Cooper, epIMS Chief Operating Officer, says: “Energy price caps do not represent the maximum you are allowed to be charged for a year’s worth of energy, but rather than maximum you can be charged for each unit of energy and standing charge.
“Therefore, a rising price cap doesn’t mean that your household bills necessarily have to increase because if you take steps to reduce usage, you can save money regardless of where the cap stands.
BEHAVIOURAL CHANGES
“Reducing energy can be achieved through simple behavioural changes such as turning off lights and reducing the length of time spent in the shower, but it’s also important to evaluate and improve the energy efficiency of your home itself.
“If you can analyse the current efficiency of your home and highlight the areas in which it falls below the desired standard, you can know which changes are going to have the most positive impact, from double glazing and insulation improvements through to the type of boiler that powers your hot water and heating.”
