New Ofgem price cap lowers energy bills: What you need to know

Understanding the Energy Price Cap

The Energy Price Cap limits the maximum amount energy suppliers can charge per unit of energy. It reflects changes in energy costs and inflation, ensuring fair pricing for consumers.

How Does the Energy Price Cap Affect You?

Applicable Tariffs: The price cap applies to default energy tariffs or standard variable tariffs. You’ll see a difference if you pay by direct debit, standard credit, prepayment meter, or Economy 7 meter.

Fixed Tariffs: If you’re on a fixed tariff, your energy costs won’t change.

Prepayment Meters: From 1st October 2023, discounts for prepayment meters are applied to the standing charge instead of unit rates.

Direct Debit Payments: Ensure your bill’s accuracy by submitting a meter reading to your supplier.

What is the New Price Cap?

For Direct Debit: The cap is set at £1,568 for an average family’s energy usage from July to September 2024, a 7% drop from the previous cap of £1,690.

Other Payment Methods:
Prepayment meters: £1,522
Standard credit: £1,668
Economy 7: £1,037

Rates vary depending on home size and region.

Will Energy Prices Continue to Fall?

Energy prices are reviewed quarterly, meaning they can change every three months. Stay informed about future updates to manage your energy bills effectively.

Source:

Energy bills set to fall from July as new price cap announced | Property news (rightmove.co.uk)