Energy Price Cap: The Winter Backbone Is About to Get a Pinch Bigger
Energy consultancy Cornwall Insight has sounded a warning bell: Ofgem is likely to raise the UK’s energy price cap again in the second winter of 2025. The headline number? £1,736 on 1 January 2025, a 1 % jump from the current £1,717.
Why As Many Thought It Should Bite
- After the October price‑cap hike, households were hoping for a reprieve.
- Forecasts predict the cap’s temperature will stay in the “hot zone” for the rest of winter.
- Only a modest cooling is expected in Q2 and Q4 of 2025 when Ofgem revises the cap every three months.
Inside the Team’s Take
Craig Lowrey, principal consultant at Cornwall Insight, sums up the mood: “Supply concerns keep the market jittery, and extra charges have stayed steady—so prices hover close to the tip of the iceberg.”
Lowrey acknowledges the disappointment: “Even though we almost guessed this year’s story, seeing no drop after last autumn’s climb is still a cold slap to many of us heading into the snow.”
What’s the Recipe for Relief?
He’s not leaving it to chance. “It’s widely accepted that high prices are here to stay, but we must stir up action.”
- Social tariffs: give vulnerable households a smoother ride across the financial frost.
- Price‑cap adjustments: sharpen the tools that manage overall cost swings.
- Benefit restructuring: tweak the safety net so it feels less like a frigid blanket.
- Targeted support: hand out community‑based help in the huddles that struggle hardest.
Lowrey urges governments to keep the momentum going while providing immediate warming for those caught in the cold spots. “Inaction is a choice that leaves people in the dark—literally.”
Stay in the Loop
Get real‑time updates on holiday energy costs straight to your device. Subscribe now and keep your thermostat (and your wallet) in check!
