Will Energy Prices go down?
Following the recent January shift, the majority of energy and gas prices have surged, leading to a 5% increase in the Ofgem energy price cap for UK homeowners. While the current prices are not as extreme as those witnessed in late 2022, they remain unaffordable for many. Analysts have long anticipated significant reductions in the price cap.
For the latest updates, read on for the news released on February 23rd.
The energy regulators cap limits what energy companies can charge as standard on variable tariffs, this means that many households could pay for each unit of gas & electricity including standing charges. This changes every three months and is largely driven by changes in the cost of energy wholesale. While wholesale prices gradually fell in 2023, they began to rise again in October and November of 2023 meaning that the price cap increased by 5% in January to £1,928 a year for a typical household. This price cap will continue to apply until the end of March 2024.
The biggest question is whether energy prices will fall in 2024. While the price cap is expected to fluctuate throughout the year it is expected that bills will get a little cheaper than they are now. Predictions have previously shown the price cap dropping and we hope this will continue for future Ofgem caps.
As for Businesses the above will also apply but many energy companies offer schemes to help improve business energy efficiency which can reduce costs.
Some ways that will help your business improve can include:
Analysing your costs
– being smart with your accounting and cashflow.
Find the best energy deal available
– with prices being high across the board there still might be a possibility to reduce the amount you are paying for electricity and gas. Businesses tend to use more energy than residential properties. There are many price comparison websites that are available to help.
Taking energy efficient measures
– switching to LED bulbs, turning off equipment at the end of the day, installing smart meters, minimizing heat loss, and getting regular energy audits can help reduce your energy bills. It’s worth noting that getting an up to date EPC rating will help identify areas which can be improved therefore possibly saving you money!
Accessing energy efficient and sustainable schemes
– there are many schemes available offering grants and loans to help businesses become more energy efficient and sustainable. For more information look at your area’s government website.
On the 23rd of February 2024 the energy regulator Ofgem announced that the energy price cap will reduce significantly for the second quarter of 2024. The price cap will fall by 12.3% on the previous quarter from 1st April to 30th June 2024. On average a household paying by direct debit for dual fuel will pay £1,690 a drop of £238 over the course of a year. Although this is good news Ofgem has recognised that the cost of living remains high, and prices may change after June.
At Quinnross Energy we provide an array of services to help with energy efficiency and sustainability.
If you would like to know more, please get in touch, we would be more than happy to help.
