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Households will see their gas and electricity bills change on Saturday when Ofgem’s latest energy price cap comes into force.
The Industry regulator made the announcement in May, and a recent forecast from Cornwall Insight said energy bills will rise again under the January 2024 price cap.
The research firm said it saw the cap for a typical household at the equivalent of £1,871 per year from October to the end of December.
Here’s everything you need to know
Released quarterly, the cap limits what utility companies can charge customers for each unit of gas and electricity they use.
It sets these two things:
• The maximum amount energy firms can charge for each unit (measured in kilowatt-hours) of gas and electricity
• The maximum daily standing charge – which is part of your bill that pays to be connected to the grid
This still means the more energy you use, the more you pay.
Currently, this is most households – whether you pay by direct debit or a prepayment meter.
It doesn’t apply to the small numbers of people on fixed rate tariffs – set by the energy companies, not the regulator – and people who use oil to heat their homes.
Ofgem announced it was cutting its price cap from £3,280 to £2,074 in May – but Saturday is when it comes into force.
It means the average household energy bill will fall by £426 a year.
The £2,074 figure is how much the average household would typically use over a period of a year based on the updated unit price.
But the total annual cost per customer will be different depending on how many people you live with, the size of your home and how much energy you use.
Unit prices…
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