If you’re wondering when Ofgem will announce the new energy price cap, you’re not alone. After a massive 54% increase in the energy price cap (opens in new tab) back in April, many of us have been worrying about how much our energy bills will cost (opens in new tab) if there is another sizable increase when the cap changes again in October.
Energy regulator Ofgem sets the energy price cap and reviews it twice a year, first in February and then again in August. Changes announced in February and August are then implemented in April and October respectively.
Speaking of the price cap increase in April, Jonathan Brearley (opens in new tab), chief executive of Ofgem, said: “The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.”
But with wholesale energy prices still going up (opens in new tab), analysts have been predicting another massive energy cap hike of around 65%, but when will we know for certain how much the price cap will go up?
When will Ofgem announce the new energy price cap?
Ofgem will announce what the new energy price cap will be on Friday 26 August 2022. The new cap will then come into effect on 1 October 2022.
Latest predictions from analysts at Cornwall Insight suggest a 65% increase, which means energy bills are likely to hit £3,244 per year, based on average typical use.
How often the price cap is reviewed is also up for review. Right now, the price cap is assessed every six months, but it is possible that this could be changed to every three months. More frequent assessment of the cap should mean less steep rises, and, if prices do fall, that could be passed on to customers sooner.
Ofgem’s Jonathan Brealey added that the “proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers. It would also help energy suppliers better predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures, which ultimately pushes up costs for consumers.”
We update our calculator with the latest predictions and will update it again when the official announcement is made. Simply input how much you pay for your energy each month, and we’ll show you how your bill will be affected if the cap rises again in October.
How can I keep my energy bill as low as possible?
In normal circumstances, switching your provider is a great way to keep your energy bills low, but no energy companies have cheap deals right now. You might find that some providers are coming out with expensive fixed tariffs, but whether or not you should switch to a fixed-rate tariff (opens in new tab) (if you are on your supplier’s standard variable or default tariff) is a tricky question to answer.
A reliable way to keep your energy costs as low as possible, is to reduce how much energy you use. There are numerous ways to save energy in homes (opens in new tab), including avoiding the use of a tumble dryer, using eco cycles on wet appliances like dishwashers and washing machines, and not leaving appliances on standby.
Remember too that almost all households will have a £400 energy rebate (opens in new tab) applied to their energy bills from October 2022. Eligible low-income households will also receive a £650 cost of living payment (opens in new tab), the first instalment of which should have already been received by most qualifying households.