Consultations held with the Commission on assorted matters:
Article:
Energy Costs Rising Across Regions: A Comparative Analysis of United States and United Kingdom
Recent changes in energy markets have led to increased electricity, gas, and heating costs in various regions, particularly in the United States and the United Kingdom.
United States - Illinois
In Illinois, municipal utilities have not implemented specific energy price caps as seen in the UK. However, residents have noticed a substantial increase in electricity rates. Effective January 1, 2025, ComEd, one of the main utility providers, enacted a $606 million increase in delivery rates. This rise is further accompanied by an expected substantial increase in the supply rate in June 2025, which could see residential bills rising by approximately $7.50 to $10.00 per month for a typical user consuming 500 kWh of electricity[2]. Factors contributing to these increased costs include infrastructure investments, rising operational costs, the transition to cleaner energy as mandated by the Climate and Equitable Jobs Act, and increased demand and capacity costs[2].
United Kingdom
In contrast to the United States, the UK employs an energy price cap set by the regulator Ofgem for standard variable tariffs. As of May 2025, the cap stands at £1,849 per year for typical dual fuel customers until June 30, 2025[3]. From July 1, 2025, this cap will decrease to £1,720 per year for similar consumption levels, reflecting a 7% reduction[5]. It is essential to note that this cap only safeguards consumers on default tariffs from excessive price increases, and those on fixed tariffs remain unaffected[5].
While energy price caps vary significantly across regions, the UK's regulatory framework helps mitigate consumer costs through the cap on default tariffs. In the United States, the lack of a similar cap exposes residents to increased energy costs, as demonstrated in the example of Illinois.
[1] Ofgem. (2023). Energy price cap: A brief history. https://www.gov.uk/government/news/energy-price-cap-a-brief-history[2] Illinois Commerce Commission. (2023). ComEd's rate design change proposal. https://www.icc.illinois.gov/common/File/Briefcase/ComEd%20Rate%20Design%20Change%20Proposal.pdf[3] Ofgem. (2023). Domestic energy price cap. https://www.ofgem.gov.uk/resources/domestic-energy-price-cap[4] Statista. (2023). Average electricity price for households in the United States from 1990 to 2022. https://www.statista.com/statistics/271366/average-electricity-price-for-households-in-the-united-states/[5] Ofgem. (2023). Price cap changes explained. https://www.ofgem.gov.uk/energy/domestic/price-cap-changes-explained
- The rising energy costs in the United States, particularly in Illinois, have prompted concerns in the finance industry, as utility providers such as ComEd increase delivery rates, potentially affecting household budgets.
- In contrast to the volatile energy costs in the United States, the UK's regulatory framework, which includes an energy price cap, helps stabilize the finance industry by providing a measure of protection for consumers on default tariffs.
