
Major changes to UK driveways are set to kick into gear this Tuesday, with a directive issued to the nation's million-plus electric vehicle (EV) owners. The UK's EV aficionados who power up their cars at home are bracing for the introduction of a new Ofgem price cap that comes into effect TOMORROW.
Ohme CEO David Watson has pointed out: "Charging at home will always be the most affordable place for EV drivers to charge their cars and this lower electricity price is great news to help them reduce their running costs.
"However, any EV driver charging at home should look at switching to one of the wide range of energy tariffs that drop those costs still further to help save them even more money."
Price cap peggedOfgem, the industry watchdog, has announced that as of 1 July 2025, the price cap will be pegged at £1,720 for the average dual-fuel household paying bills by Direct Debit. This sets the stage for a £129 (or 7%) cut from the ongoing rate of £1,849 per year.
But it's crucial to bear in mind that this new cap is still a hefty 34% above the levels seen before the energy crisis erupted. So, while the reduction is welcome, it does call for a measured interpretation, as outlined by Birmingham Live, reports Yorkshire Live.
Start saving nowIt's also pertinent to remember that since July 2024, when the cap dipped to £1,568 - its nadir since the crisis onset - we haven't witnessed further descents.
Ben Gallizzi, Senior Content Editor at Uswitch, commented: "The price cap will drop by 7% in July, but customers can start saving now by fixing their deal. There are deals available to switch to that can save around £250 a year against the price cap. If you have the option of getting off a standard variable tariff and ditching the price cap, it's worth doing that now."
Government subsidiesIn October 2022, when there were predictions of Ofgem's price cap level rocketing to £4,279 by January 2023, the government intervened with the Energy Price Guarantee as a lifeline for families grappling with escalating energy costs. Initially designed as a "safety" price cap, it was implemented at £2,500 annually (with government subsidies) for an average dual fuel customer's usage.
As May 2023 rolled in, announcements from Ofgem and government representatives revealed the Energy Price Guarantee was set to rise to £3,000. This measure has since been scrapped altogether.
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