British Gas issues update over Ofgem energy price cap rise and customer bills

British Gas has broken its silence over the new Ofgem energy price cap from January - which means a bill rise for customers. The energy giant, which is rivalled by OVO, EDF, EON and Octopus, spoke out after the Ofgem confirmation on Friday.

British Gas warned: "On 22nd November, Ofgem announced that energy unit prices and standing charges will increase from 1st January 2025. If you’re on a variable tariff, this means you’ll pay more for your energy." It added: “The energy market has been more stable recently, but surprises can happen. Global politics play a big role in energy prices.

"For example, if conflicts in Ukraine, or the Middle East worsen, wholesale gas prices could go up. This would eventually mean higher bills.” The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them for each unit of gas and electricity. The amount you pay will depend on actual household usage as well as meter and payment type. This means households that use more energy will pay more.

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Andy Kerr, founder at BOXT , commented: “The Ofgem price cap sets the maximum suppliers can charge per unit of energy. Consumers should remember that the Ofgem price cap does not set the maximum a household will pay on their energy bills and need to remain vigilant about their usage to avoid receiving an unexpectedly costly bill.”

To maximise energy savings this autumn and winter, consumers should look for ways to reduce their energy usage. Andy says: “As energy bills continue to be a concern across the UK, it is important to look into ways to make long-term savings. Renewable options like solar and heat pumps can help consumers make their homes more efficient, leading to savings on energy bills.

“Ultimately, it is important you have the best system that is suited to your home. Ensuring you have the correct boiler for your home or considering more renewable sources like heat pumps or solar panels will optimise your household’s energy production, which will help you make long-term savings.”