Households face double whammy of higher energy prices and increased usage
interactive investor comments on the Ofgem energy price cap rise.
22nd November 2024 07:41
by Myron Jobson from interactive investor
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The upcoming Ofgem energy price cap hike in the new year is particularly difficult to digest amid the current cold snap, with many households cranking up their heating to stay warm.
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“Many households are already facing financial pressures from the double whammy of higher energy bills, following the 10% hike in the energy price cap in October, and increased usage. The latest price cap rise and the possibility of continued cold weather in the new year could exacerbate matters, resulting in higher bills when people can least afford them, following the festive bumper spending period.
“Energy bill rises are a particularly sticky element of inflation for households due to their inescapable nature. Unlike discretionary spending, energy costs are essential and unavoidable, meaning households must budget to cover these expenses regardless of price increases.
“The increase in the energy price cap presents a timely opportunity for households to review their current energy tariffs and ensure they are paying a competitive rate. It is worth shopping around and comparing rates, but don’t overlook the fine print—particularly any exit fees that could eat into your savings. Taking time to assess all costs involved can help ensure you’re getting the best deal in the long run.”
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