From today (the 1st of October), the Energy Price Cap is due to rise by 10%. Under the new energy price cap, the typical annual dual-fuel bill paid by direct debit will be £1,717 per year.
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 last quarter of 2024, a household paying by Direct Debit will see the cap increase to £1717, up from July – September’s price of £1,568 a year – an increase of 10% on average and an extra spend of £149 per year. 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: 6.24p per kWh (up from 5.48p per kWh)
Standing charge: 31.66p per day (up from 31.41p per day)
Electricity
Unit rate: 24.50p per kWh (up from 22.36p per kWh)
Standing charge: 60.99p per day (up from 60.12p 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.
On A Low Income?
You may be eligible for the Warm Home Discount, which could give you £150 towards energy costs from October. It’s available to millions of households in England, Scotland and Wales. To check if you’re eligible, read our latest blog.
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.
