Energy bills to rise by 1.2% in January 2025

Energy bills are set to rise 1.2% in the New Year when the latest energy price cap comes into play, Ofgem has confirmed

Side shot of woman's hands in a jumper adjusting the thermostat valve on a heating radiator at home
(Image credit: Olga Dobrovolska via Getty Images)

The energy regulator Ofgem has announced a 1.2% increase in the energy price cap for the first three months of 2025, taking the average household bill to £1,738 - £21 more than what you're paying under the current price cap.

With the energy price cap having already risen by 10% in October, the increase, while small by comparison, piles more pressure on consumers that had hoped energy prices would fall in the new year.

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Row 0 - Cell 0 Energy price cap per unit and standing charge1 October to 31 December 2024Energy price cap per unit and standing charge1 January to 31 March 2025
Electricity24.50 pence per kWh; 60.99 pence daily standing charge24.86 pence per kWh; 60.97 pence daily standing charge
Gas6.24 pence per kWh; 31.66 pence daily standing charge6.34 pence per kWh; 31.65 pence daily standing charge
Dan McEvoy
Senior Writer

Dan is a financial journalist who, prior to joining MoneyWeek, spent five years writing for OPTO, an investment magazine focused on growth and technology stocks, ETFs and thematic investing.

Before becoming a writer, Dan spent six years working in talent acquisition in the tech sector, including for credit scoring start-up ClearScore where he first developed an interest in personal finance.

Dan studied Social Anthropology and Management at Sidney Sussex College and the Judge Business School, Cambridge University. Outside finance, he also enjoys travel writing, and has edited two published travel books.