From the 1st of July, the Energy Price Cap is due to fall by 7%, take a look at our latest article to read more.
What Is The Price Cap And How Does It Work?
The price cap is based on the maximum amount an energy supplier can charge for a unit of energy and is set every three months by the regulator Ofgem. The amount is based on a typical household’s energy, calculated by average gas and electricity usage.
For the third quarter of 2024, a household paying by Direct Debit will see the cap decrease to £1,568 a year, down from the April-June 2024 total of £1,690 a year – a drop of 7% on average and a saving of £122. It’s worth noting that while these numbers are for typical use, if you use more, you pay more.
Unit Rates And Standing Charges Under The New Price Cap
On average (this varies based on region), the unit rates per kilowatt hour (kWh) and standing charge increases for Direct Debit customers are shown below:
Gas
- Unit rate: 5.48p per kWh (down from 6.04p per kWh)
- Standing charge: 31.41p per day (down from 31.43p per day)
Electricity
- Unit rate: 22.36p per kWh (up from 24.50p per kWh)
- Standing charge: 60.12p per day (up from 60.10p per day)
If you pay upon receipt of your bill rather than by Direct Debit or prepayment, unit rates and standing charges are higher and will increase your bill.
Should I Move To A Fixed Tariff?
Based on the prediction that the energy price cap will go up by 12% from the 1st October – 31st December 2024 and the current price cap cost, MoneySavingExpert.com says “If you find a fix for up to 2% more than the current (April to June) Price Cap, it’s predicted you’ll save over the year compared to staying on the Price Cap’’. The top energy deals to consider are listed here and you can even use the cheap energy club to compare fixes and see whether it’s worthwhile.
In Energy Debt?
If you’ve found yourself struggling to pay your rising energy bill, it might be time to get some debt advice. For support with any problems, you can go online to get debt advice anytime you’d like. There’s no need to call us, once you’ve filled in your details, you’ll receive an instant recommendation on your screen.
Or, to talk to a member of our helpful team via phone, email, text or online chat, please contact us.
