KPMG UK responds to Ofgem’s January Price Cap announcement

KPMG UK responds to the announcement from Ofgem that the Energy price cap will rise for the second consecutive quarter to £1,738 from 1st January 2025

KPMG UK responds to the announcement from Ofgem

Responding to the announcement from Ofgem that the Energy price cap will rise for the second consecutive quarter to £1,738 from 1st January 2025, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:

“With most households remaining on default tariffs, news that there will be another rise in the energy price cap just as temperatures dropped significantly, will be unwelcome for many families as they turn their heating up and continue to struggle with the cost of living.

“A lot of the arguments put forward for the transition to clean power have been around the potential positive impact it will have on bills. While there is good evidence that bills will be lower and less volatile in the longer term*, there may well be pushback if people feel the transition to clean energy is costing them more in the near term – as we have seen in other countries. To avoid this, there needs to be a comprehensive policy response on affordability and bills, building on the Government’s Warm Homes Plan, alongside policies to accelerate the transition to green energy.”

 

Notes:

Previous Ofgem price cap levels:

July to September 2024 - £1,568

October to December 2024 - £1,717

*Second National Infrastructure Assessment - NIC

 

For further information please contact:

KPMG Media Relations

Claire Barratt

Mobile: +44 (0)7923 439264

claire.barratt@kpmg.co.uk

 

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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