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What is the new energy price cap in the UK?
The new energy price cap in the UK will rise to £1,723 from October 1, 2024. This increase reflects the ongoing fluctuations in energy prices and is set by Ofgem, the energy regulator. The cap is designed to protect consumers from excessive charges while ensuring suppliers can cover their costs.
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How does the energy price cap affect my bills?
The energy price cap directly influences the maximum amount suppliers can charge for energy. If you are on a variable tariff, your bills will likely increase in line with the new cap. Households could see their energy costs rise significantly, making it essential to explore fixed-rate tariffs or other options to mitigate these increases.
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Why is the energy price cap rising now?
The energy price cap is rising due to ongoing volatility in the energy market, which has seen prices fluctuate significantly over the past year. After a drop from £1,928 in January to £1,568 in July 2024, forecasts indicate a rebound in prices, prompting the increase in the cap to ensure suppliers remain viable.
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What can I do to manage my energy costs?
To manage rising energy costs, consumers are encouraged to consider fixed-rate tariffs offered by various suppliers. These tariffs can help save between £175 and £300 depending on your energy consumption. It's also advisable to monitor your energy usage and explore energy-saving measures to reduce overall bills.
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Are there any fixed-rate tariffs available now?
Yes, several suppliers have launched fixed-rate tariffs in response to the price cap increase. For example, Outfox the Market's Fix’d Dual Jul24 v3.0 is available at £1,558 annually, which is close to the current price cap. Consumers should compare options and act quickly to secure the best deals before prices rise further.