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April Price Cap rises to £1,849 – tariff changes planned, and billing pressure grows
Ofgem have today announced the energy Price Cap for April 2025 will be set at £1,849, reflecting a £111 (6.4%) increase from January’s headline value. This marks the third increase in a row and the highest level since January 2024. The increase has been largely driven by higher forward wholesale costs, which rose by ~20% during the observation window.
~7m customers are now avoiding the Price Cap on incentivised tariffs
The number of customers on fixed and non-standard tariffs has more than doubled following the energy crisis, as suppliers introduced meaningful discounts against the Price Cap in 2024. This aligns with the gradual rise in switching activity observed throughout the year.
Why is energy debt still going up?
Recent media coverage is recycling something that as an industry we’ve understood for a while – energy debt is still going up. But why? Compared to 2 years ago the macro economic picture is positive – prices have fallen significantly and incomes are outpacing inflation. This should all be driving debt down, but it’s growing.
UKCSI shows Utilities must bridge customer satisfaction gap
The latest UK Customer Satisfaction Index (UKCSI) reveals a stark picture for Utilities, against a backdrop of political and regulatory pressure. While 31% of customers across all sectors are willing to pay more to receive excellent service, Utilities continues to rank lowest in customer satisfaction. With service failures now costing UK businesses £7.3bn monthly, and Utilities lagging behind in how its customers perceive it, the need for change remains difficult to ignore.
Improving billing accuracy as potential Ofgem changes pose £200m+ risk
Suppliers may need to increase 'billed to actual' performance by 10%, if the back bill window is reduced to 6 months by Ofgem. See how to mitigate the commercial and operational risks in this article, and get tailored guidance from our interactive assessment.
Price Cap set to increase by 5% (~£80) to ~£1,815 in April
We're expecting Ofgem to set the cap at ~£1,815, an increase of £77 based on wholesale prices so far in the current observation window. Current prices also suggest the cap could stay around this level throughout the year.
Service demand to rise with water bills – What next for suppliers?
Water bills are set to rise by £10 a month from April, according to this week’s forecast from Water UK - adding further pressure to household budgets. At the same time, service demand is expected to grow, making it crucial for water suppliers to prepare. As we explore below, the success of any servicing operation hinges on people and processes, but their role becomes even more vital when supporting vulnerable customers.
Suppliers face prepay balancing act as additional support credits hit £150m
Understanding who in the prepayment portfolio needs support - and how much - remains critical for energy suppliers. While ~£9 of the current price cap includes a temporary allowance for bad debt, this relies on suppliers operating at a ‘notionally efficient’ level. Rachel Littlewood and the team outline five steps to help you enhance your approach, and strike the right balance between support, operating costs, and bad debt.
Domestic suppliers will need to make up £250m cash shortfall
Domestic energy suppliers faced a £250m cash coverage deficit at end of Q3. For the third consecutive quarter, suppliers had to finance a shortfall in net balances, even as customer credit balances reached their seasonal peak. It marks a shift from previous years, when suppliers had a positive net cash position during this period.
MHHS could trigger ~£200m spike in physical meter read costs for suppliers
With just over half of meters operating in smart mode and many suppliers behind on installation targets, physical meter read costs are set to spike when MHHS goes live. The reform will empower customers to reduce bills, by aligning consumption with cheaper, greener energy - but significant progress is needed to ensure these benefits are widely accessible.
Adapting universal service agents for an evolving energy sector
The universal agent model offers huge potential - but with decarbonisation, digitalisation, and decentralisation reshaping the energy sector, making it work is more complex than ever. By upskilling agents, integrating AI, and streamlining processes, companies can future-proof their approach and gain a competitive edge.
Video: Transforming leadership capability with E.ON Next
In this video, Ramona Vlasiu (COO), Chris Shead (Director of Customer Operations), and Stefan Guy (Director of Debt) highlight how E.ON Next's partnership with BFY Group is helping to drive a high performing culture in customer operations.
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