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Energy Price Cap

 

For the period of 1 July to 30 September 2024, the Ofgem price cap is set at £1,568 per year for a typical household who use electricity and gas and pay by Direct Debit

The Price Cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, and sets a maximum daily standing charge (what you pay to have your home connected to the grid).

That means there's no upper limit to what you actually pay – if you use more energy, you'll pay more, use less and you'll pay less.

The price cap standing charges and unit rates

  • Electricity

    Unit rate: 22.36p per kWh
    Standing charge: 60.12p daily

  • Gas

    Unit rate: 5.48p per kWh
    Standing charge: 31.41p daily

The Price Cap is set differently for those that pay by monthly direct debit, those that pay quarterly or on the receipt of a bill, and for those that prepay for their energy:

  • If you pay by Direct Debit, the Price Cap for a typical household will fall by 7% to £1,568 a year.

  • If you pay by cash, cheque or quarterly direct debit, the Price Cap for a typical household will drop by 7% to £1,522 a year. Ofgem says this is higher than paying by direct debit to reflect the additional costs from suppliers to bill those that don't pay by monthly direct debit.

  • If you prepay for your energy, on typical usage, the Price Cap will be £1,668 a year, a 7% drop. Ofgem said it costs more to bill customers with prepayment meters, compared to those paying by direct debit, but the Government has committed to end the 'prepay premium' and will again provide a small discount to the Price Cap standing charges from 1 January 2024, through the EPG.

 

If you’re not sure what tariff you’re on, check your energy bill or contact your energy supplier.

If your supplier has recently gone bust and you were moved to a new supplier, it’s likely you’re on a standard variable tariff.

Similarly, if you’ve come to the end of a fixed term contract, or are about to, it’s likely you’re on a standard variable tariff or will be moved to one. 

 

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