Ofgem energy price cap for October to December 2024: comment

Commenting on Ofgem's energy price cap for 1 October to 31 December 2024, which is expected to see energy bills rise by around 10% or £150 [1], Jess Ralston, Head of Energy and the Energy and Climate Intelligence Unit (ECIU) said:

"Come winter, bills will be 50% higher than they were pre-crisis on average, due to the lingering effects of high gas prices and our dependence on the fuel for home heating and electricity generation. [2]

"A lack of progress on energy efficiency and heat pumps means that our reliance on gas hasn’t fallen much in recent years, despite the volatility in the international markets forcing bills to skyrocket. The new Government has made steps on renewables, but not confirmed its plans for home heating or insulation yet, and there is clearly no time to waste.

"Unless we start to reduce our demand for gas, we will only see our dependence on foreign imports rise. Oil and gas from the North Sea is sold on international markets to the highest bidder so doesn’t help with our bills or energy independence.

"With the removal of the winter fuel payment for some pensioners at the same time as bills going up, it’s likely that some will struggle and it remains to be seen if the Government will bring in measures to support those worst hit by the removal of winter fuel payment."

ENDS

Notes to editors:

1. The level of Ofgem's energy price cap for Q4 2024 is expected to be announced at 7am on 23rd August. On 19th August, Cornwall Insight estimated that the price cap will rise to £1,714 per year for the typical dual fuel home, which is around 10% or £150 higher than Q3 2024: https://www.cornwall-insight.c...
2. Pre-crisis average is taken between 2018 and 2021, with bills under the price cap this winter estimated to be 50% higher, or around £550, than this.

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: +44 (0)7894 571 153, email: george.smeeton@eciu.net