As of January 2025, the energy price cap will rise to £1,738 per year for a typical household using both electricity and gas and paying by Direct Debit. This reflects a 1.2% increase compared to the previous cap.
The energy price cap is designed to ensure that consumers pay a fair price for the energy they use. It is adjusted regularly to reflect the costs of supplying that energy, which include wholesale energy prices, operational costs like billing and smart meter installations, and network charges for transporting energy to your home.
From January, the energy price cap will set the maximum rates for gas and electricity per unit, as well as the daily standing charge, but your overall bill will depend on how much energy you use.
The price cap changes every three months, so it is important to be aware that prices may shift again in April 2025, based on energy market conditions. If your energy usage increases, you may see a higher bill.
You can read more about the energy price cap policy here
If you're on a fixed tariff, your prices will remain the same until the end of your contract. However, if you're not on a fixed deal or are currently on a variable rate, the January price cap rise may affect your bills.
If you're on a single-fuel tariff (either gas or electricity), it might be worth considering switching to a dual-fuel tariff to get the best prices.
The way you pay for your energy can affect your overall costs. Let’s take a look at the different payment options and, importantly, which one is the most cost-effective.
-
Direct Debit:
Direct Debit is our most popular payment method, with over 90% of our customers choosing this option. It allows you to spread your energy payments into manageable monthly amounts, so you avoid building up large credit balances or falling into debt during months of higher usage. For more details, take a look at our Direct Debit FAQs. -
Payment on Bill:
This method involves paying for the energy you’ve used over a period of time, typically between two weeks and three months. Unfortunately, this is a more expensive option, as you’ll be charged the maximum rate for your energy. You’ll also miss out on the lower prices available through Direct Debit.
If you'd like to switch to Direct Debit, simply get in touch with our friendly team via live chat, email, or phone, and we’ll help you make the change quickly and easily.
To help you avoid any unexpected bills and ensure you're only charged for the energy you actually use, we encourage you to submit your meter reading. It's really simple! Just take a reading on 31st December 2024 and send it to us by 3rd January 2025.
Got a smart meter? Great! Your readings will be sent automatically.
If you're manually reading your meter, just check the number on your meter display and submit it via our website or app. You can find more guidance on how to read your meter here.
It's always a good idea to take a photo of your meter reading for your records. You can submit your readings quickly and easily here.
The ongoing rollout of smart meters is transforming how households manage their energy. With automatic and highly accurate meter readings, you won't need to submit them manually. Smart meters also provide you with a clearer view of your energy usage, helping you make more informed decisions about your consumption.
Here are just a few of the benefits a smart meter can offer you:
Want to get a smart meter?
You can contact SMS plc, our smart meter installation partner, directly to book an appointment by calling 0330 135 9982.
With the price cap increasing slightly, we remain more committed than ever to providing you with access to all available support if you're facing financial difficulties or struggling to pay for the energy you use.
We have a dedicated section in our FAQs outlining the support we offer, as well as details of other organisations that provide free, confidential, and impartial advice.
Click the icons below to learn more about the energy and financial support available to you:
If you have any further questions regarding the price change that haven’t been addressed in our email, PDF attachment, or in this FAQ, please don’t hesitate to contact our helpful energy specialists who will be more than happy to assist you.
The quickest way to reach our team is via our live chat feature. You’ll be connected to one of our energy specialists who will assist you with your query in real-time.
If your circumstances have changed or you are finding it difficult to pay for the energy you use, it’s important that you get in touch with us so we can arrange payment solutions and offer you personalised support.
Click on the icons below to contact us: