Ofgem’s energy price cap could be higher in January 2025 than initially estimated, according to one of the country’s biggest suppliers.
Yesterday, the energy regulator raised the cap, which is the typical annual dual-energy bill paid by direct debit, 10 per cent to £1,717.
Ahead of this hike, Cornwall Insights published its forecast for the New Year that the price cap will plummet to £1,697 for a typical gas and electricity customer.
This would be “welcome news” for everyday households with typical energy usage following the cost of living crisis.
However, EDF is sounding the alarm that the cap may not fall as much as previously thought come January 2025.
As it stands, the energy firm’s analysts are predicting £1,721 for January to March next year.
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The energy supplier has updated its projections for the price cap
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David Edmonds, the head of Pricing and Valuation in Wholesale Market Services at EDF, shared the firm’s thinking behind the forecast.
He explained: “We’re still seeing a lot of volatility in the global wholesale energy markets, which means our latest forecast from yesterday has come in slightly higher than prices last week, at £1,721 for January to March 2025.
“This is due to a couple of factors including tensions in the Middle East, as well as between Russia and Ukraine, and unpredictable weather over the coming months.
“Given these uncertainties, it’s not clear yet exactly where prices will go in the coming months before the window for Q1 prices closes in November.”
It should be noted that EDF updates its forecast weekly so this prediction is subject to change.
“We’ll continue to closely monitor developments in wholesale gas and electricity markets to understand how they impact energy costs,” Edmonds added.
“To keep consumers informed, we are continuing to publish a weekly price cap prediction on our website.
“We encourage customers to keep an eye on predictions to help them make the best decision on their energy tariff choices, with certainty increasing as we get closer to mid-November.”
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The cost of living crisis has pushed energy bills to new heights in recent years GETTY
Currently, EDF is working with Plymouth Citizens Advice to offer customers in-depth financial support and debt advice.
On top of this, the energy supplier is offering direct financial support via EDF’s Customer Support Fund.
This fund has supported 55,000 customers since its inception, providing energy debt relief and replacing inefficient or broken White Good appliances.
On top of this, the firm is in talks with the Government to help define an industry-wide approach to helping consumers through the cost of living crisis.