What is the new Energy Price Cap from 1st October for Households?
Ofgem, UK’s energy regulator, has today set the October - December Energy Price Cap at £1,923, compared to £2,074 in July an average 7% drop.
It is important to note that the cap is on unit prices and not your total bill, so your actual costs are determined by how much energy you use.
OK but what does that mean?
Although the price cap has fallen the average household will still pay almost double the rate for their gas and electricity of what they were paying two years ago.
There is also now no additional government support - the Energy Bill Support Scheme, which gave all UK households a £400 discount on their energy bills, ended in March 2023. Therefore with the price cap falling by just 7%, energy bills will still be higher than they were last winter.
Will energy prices come down in 2024?
Cornwall Insight predicts that energy prices will go up in January 2024 by around 9%, with the Energy Price Cap rising by around 9% in the first quarter of 2024.
The rise is due to the recent gas price surge across Europe, caused by the threat of strikes at liquefied natural gas facilities in Australia.