Energy Bills to Increase Again: What You Need to Know

From April to June 2025, the energy price cap will increase by 6.4%, raising the average household energy bill to £1,849 per year. This represents an increase of £111 compared to the previous quarter.

The actual amount a household pays depends on several factors, including property size, energy efficiency, and usage habits. Homes with poor insulation or inefficient appliances are expected to face the highest cost increases.

Who Will Be Most Affected?

Energy costs vary widely based on a home's energy efficiency. Properties are rated from A (most efficient) to G (least efficient) under the Energy Performance Certificate (EPC) system. The lower the rating, the more energy is required to heat and power a home.

For example, an A-rated one-bedroom flat may see an annual increase of around £34, while a G-rated detached house could face an additional £763 per year in energy costs.

Key Factors That Influence Your Energy Bill

• Property Type: Larger homes typically consume more energy than smaller flats.
• Energy Efficiency: Well-insulated homes with modern heating systems use less energy.
• Usage Habits: Homes with high electricity and gas consumption will see bigger cost increases.
• Payment Method: Direct debit payments are often cheaper than prepayment or standard credit tariffs.

Five Ways to Reduce Energy Costs

With energy prices rising, making small and long-term changes can help keep costs under control. Here are five key steps to reduce your energy bills:

1. Improve Home Insulation

Poor insulation is one of the biggest causes of heat loss, leading to higher heating bills. Adding loft and wall insulation can significantly cut energy usage. Draught-proofing doors and windows also help maintain warmth, reducing reliance on central heating.

2. Use Energy-Efficient Appliances

Older appliances consume more electricity than modern, energy-efficient models. Replacing old boilers, washing machines, and refrigerators with A-rated energy-efficient alternatives can lower electricity consumption over time.

3. Adjust Daily Energy Habits

Simple changes in daily habits can lead to noticeable savings. Turning appliances off instead of leaving them on standby, reducing water heating times, and washing clothes at lower temperatures can all contribute to lower bills.

4. Install Smart Meters and Thermostats

Smart meters provide real-time data on energy usage, helping households identify where to cut back. Programmable thermostats also allow users to heat their homes more efficiently by adjusting temperatures automatically based on usage patterns.

5. Explore Renewable Energy Options

Installing solar panels or switching to a green energy provider can provide long-term savings. While the upfront cost of solar power may seem high, government incentives and lower electricity bills make it a cost-effective option in the long run.

How Energy Prices Could Change in the Future

The energy price cap is reviewed quarterly, with adjustments made in January, April, July, and October. While current trends indicate rising costs, there is potential for future adjustments based on energy market fluctuations.

Households are encouraged to stay informed about potential changes and explore energy-saving solutions to minimise the impact of rising costs.

With energy prices set to increase, taking action to improve energy efficiency can lead to significant long-term savings. Whether through insulation upgrades, smarter energy use, or renewable energy solutions, many ways exist to reduce household energy expenses.

Understanding how energy prices affect your home and making informed choices can help keep costs manageable, even as market rates fluctuate.