Understanding the New Energy Price Cap (April to June 2024)
Quote from VATcal on 02/04/2024, 20:56The energy price cap, which limits what suppliers can charge for gas and electricity, has seen a welcome decrease. This guide explains what the new cap means for you.
What is the energy price cap?
The energy price cap protects millions of customers on standard variable tariffs (often called default tariffs). It sets a maximum amount suppliers can charge per unit of energy (kWh) and a daily standing charge.
What's the new price cap?
As of 1 April 2024, the price cap has fallen by around 12% to £1,690 per year for a typical household that uses both gas and electricity and pays by Direct Debit. This is a decrease of £238 compared to the previous cap.
What does this mean for your bill?
The exact amount you pay will depend on your specific energy usage, location, and meter type. However, for those on standard variable tariffs paying by Direct Debit, you can expect to see a reduction in your bills compared to the previous quarter.
Here's a breakdown of the new cap for a typical household:
- Price Cap: £1,690 per year
- Electricity rate: 24.50 pence per kWh
- Daily standing charge: 60.10 pence per day
It's important to note:
- These figures are averages and your actual bill may vary.
- The price cap only applies to standard variable tariffs. If you're on a fixed-rate deal, your price won't change until the end of the term.
Should you switch energy supplier?
While the price cap has come down, it might still be worth comparing deals to see if you can save even more. Use a price comparison website to find the best deals for your specific circumstances.
Here are some resources to help you:
- Ofgem - Energy price cap: https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/energy-price-cap-default-tariff-policy/energy-price-cap-default-tariff-levels
- MoneySavingExpert - What is the energy price cap?: https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/
- Which? - Compare Energy Suppliers: https://www.comparethemarket.com/energy/content/a-guide-to-switching-energy-suppliers/ (This is a good option as Which? is a reputable consumer organisation)
- Citizens Advice - Energy bills: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/
The energy price cap, which limits what suppliers can charge for gas and electricity, has seen a welcome decrease. This guide explains what the new cap means for you.
What is the energy price cap?
The energy price cap protects millions of customers on standard variable tariffs (often called default tariffs). It sets a maximum amount suppliers can charge per unit of energy (kWh) and a daily standing charge.
What's the new price cap?
As of 1 April 2024, the price cap has fallen by around 12% to £1,690 per year for a typical household that uses both gas and electricity and pays by Direct Debit. This is a decrease of £238 compared to the previous cap.
What does this mean for your bill?
The exact amount you pay will depend on your specific energy usage, location, and meter type. However, for those on standard variable tariffs paying by Direct Debit, you can expect to see a reduction in your bills compared to the previous quarter.
Here's a breakdown of the new cap for a typical household:
- Price Cap: £1,690 per year
- Electricity rate: 24.50 pence per kWh
- Daily standing charge: 60.10 pence per day
It's important to note:
- These figures are averages and your actual bill may vary.
- The price cap only applies to standard variable tariffs. If you're on a fixed-rate deal, your price won't change until the end of the term.
Should you switch energy supplier?
While the price cap has come down, it might still be worth comparing deals to see if you can save even more. Use a price comparison website to find the best deals for your specific circumstances.
Here are some resources to help you:
- Ofgem - Energy price cap: https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/energy-price-cap-default-tariff-policy/energy-price-cap-default-tariff-levels
- MoneySavingExpert - What is the energy price cap?: https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/
- Which? - Compare Energy Suppliers: https://www.comparethemarket.com/energy/content/a-guide-to-switching-energy-suppliers/ (This is a good option as Which? is a reputable consumer organisation)
- Citizens Advice - Energy bills: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/
