Ofgem News & Analysis
6 articles
Market Mood
UK Energy Prices Forecasted to Rise 13% Starting July 2023
Household energy prices in the UK are set to increase by 13% starting in July 2023, with the typical annual bill expected to rise by £209 to £1,850. This change is attributed to rising wholesale energy costs influenced by the Iran war, particularly affecting the global gas supply due to the closure of the Strait of Hormuz. Ofgem will publish the new price cap affecting approximately 19 million households on variable tariffs. It is anticipated that further price increases may occur by autumn and winter, leading to ongoing financial challenges for consumers.
Read More
British Gas (CNA) Settles Prepayment Meter Scandal with £20M Payment
British Gas (CNA) has agreed to pay £20 million into a redress fund to compensate customers following an investigation into the forced fitting of prepayment meters. The regulator Ofgem also stated that British Gas will write off up to £70 million of debts for vulnerable customers. This practice, which involved breaking into customers' homes without their consent, led to the installation of 40,000 meters lacked permission between 2022 and 2023. Ofgem has now banned such installations in high-risk households, emphasizing the need for more stringent regulations.
Read More
UK Electricity Prices Soar 18.91% Compared to Global Averages
UK electricity prices reached an average of $110.56 per megawatt hour in April, significantly higher than Japan's $92.89, Germany's $88.98, France's $26.48, and the US's $44.19. This price disparity is attributed to Britain's marginal pricing system and increased reliance on natural gas. The government is spending over £1 million (approximately $1.35 million) daily to support British Steel amid rising energy costs. Moreover, as of June 2025, households owed over £4.4 billion to energy suppliers, indicating financial strain on consumers. These developments may impact UK economic stability and energy policies.
Read More
Households may receive free electricity on sunny weekends
Households and businesses in Britain may benefit from free or cheaper electricity during periods of excess supply, such as sunny weekends, according to the National Energy System Operator (NESO). The updated Demand Flexibility Service, approved by Ofgem, aims to manage low electricity demand in summer while increasing the use of renewable energy. This program is available to customers with smart meters from participating suppliers like British Gas and Octopus Energy. Rewards for participation may include lowered rates or points convertible to gift cards, enhancing energy consumption patterns based on weather conditions.
Read More
UK Energy Prices Drop 7% as New Price Cap Takes Effect
On April 1, typical household energy costs in the UK fell by 7%, translating to a £117 annual decrease, due to the new energy price cap. Gas prices are now capped at 5.74p per kWh, while electricity is capped at 24.67p per kWh. However, due to rising oil prices linked to the US-Israel war with Iran, forecasts suggest bills could increase by 18%, or £288, by July, bringing annual costs to approximately £1,929. The energy regulator Ofgem will announce the further price cap on May 27.
Read More
UK Conservative Leader Proposes Tax Cuts on Energy Bills Amid Rising Costs
Kemi Badenoch, the Conservative leader, has urged the UK government to cut taxes on energy bills prior to considering direct payments to households amid energy price inflation. She highlighted that current energy bills are set to decrease for three months under Ofgem's price cap, but are expected to rise subsequently due to geopolitical tensions. The Conservative Party has announced plans to eliminate green levies on energy bills. Additionally, the government has indicated limitations on financial support based on borrowing constraints to maintain inflation and interest rates.
Read More