Ofgem energy price cap: How to save money on your bills when working from home

With summer coming to a close, focus is shifting towards the looming cost of winter energy bills, as the latest price cap announcement reaches its highest level in three years.

Energy regulator Ofgem announced on Wednesday that the energy price cap will rise by 4 per cent for the period running from October 1 until December 31.

The regulator said the cap will increase by £60 annually – equivalent to £5 a month – bringing it to £1,723 for a typical household using gas and electricity, if maintained at that level for a full year.

Ofgem said that this rise has been driven by higher wholesale gas prices amid the ongoing conflict in the Middle East , with volatility in global markets continuing to be the biggest factor influencing energy costs.

This announcement has sparked concern across the country, with households bracing for a more expensive winter – particularly in those who work from home.

“While home working can offer greater flexibility, it can also mean higher household energy bills , particularly when heating , lighting and appliances are being used throughout the working day,” says Mark Sait, CEO of SaveMoneyCutCarbon, which helps homeowners and businesses cut energy bills and be more sustainable.

“The good news is there are some simple changes that can help people reduce the amount of energy they use, without compromising their comfort or productivity.”

Sait stresses that even small changes can add up to meaningful savings over the course of a year, and advises: “For anyone working from home regularly, it’s worth taking a step back to look at where your energy is being used during the working day.

“Understanding those costs is the first step towards reducing them, helping households save money while also cutting unnecessary energy use and carbon emissions.”

One of the most effective ways to reduce energy costs is to make sure you’re on the right tariff, says John Kirkman, a sales consultant at the energy price comparison site Love Energy Savings.

“Many people stay on the same deal for years without checking whether it still offers the best value,” he points out. “Knowing when your current tariff ends and reviewing your options before renewal can help you avoid being moved on to more expensive rates.”

However, he warns householders to not leave it too late to search for a new energy deal. “A common mistake is waiting until a tariff has ended before looking at alternatives,” he says.

“Starting your search well in advance gives you more time to compare suppliers, understand different products and secure a deal that suits your needs and budget.”

He adds: “Many people focus on reducing day-to-day energy use, but reviewing your tariff can often be just as important. Taking a few minutes to understand your options and check whether you’re on the right deal could help you make meaningful savings over the long term.”