The new energy price cap level starts today
Update from OFGEM
Starting from October 1, 2023, energy suppliers are subject to a maximum charge of £1,834 per year for a standard household paying via Direct Debit on default tariffs. This pricing structure applies from October 1 to December 31, 2023. However, the amount you ultimately pay depends on factors like your actual household energy consumption, location, meter type, and payment method.
For the period spanning October 1 to December 31, 2023, the energy price cap rates are as follows:
Electricity Rates:
If you are on a standard variable tariff (default tariff) and pay for your electricity via Direct Debit, your charges will not exceed 27 pence per kWh, along with a daily standing charge of 53 pence. These rates are based on the average rates applicable in England, Scotland, and Wales and include VAT.
Gas Rates:
For those on a standard variable tariff (default tariff) and paying for gas through Direct Debit, the maximum charges are 7 pence per kWh and 30 pence per day for the standing charge. These rates also reflect the average rates across England, Scotland, and Wales and include VAT.
To compare the price cap levels between October 1 to December 31, 2023, and the previous quarter (July 1 to September 30, 2023), you can refer to the relevant information.
The energy price cap is periodically reviewed and adjusted every three months, setting the maximum prices energy suppliers can charge for each unit of energy. The rates for January to March 2024 will be published at the end of November.
The energy price cap is determined using Typical Domestic Consumption Values (TDCVs), which are based on the average energy usage patterns of households in England, Scotland, and Wales. The typical household figure is akin to the energy consumption of a 2-to-3-bedroom household with 2 to 3 occupants. These calculations are valuable for estimating energy bills based on household energy usage levels (low, medium, or high). They can be employed to compare energy prices and receive estimated quotes on energy tariffs from various price comparison websites.
The announcement regarding changes to the energy price cap for the period from October 1 to December 31, 2023, was made on August 25, 2023. Notably, the Typical Domestic Consumption Values have been updated to reflect reduced energy usage by households. Consequently, while the energy price cap unit rates announced on August 25 remain unchanged, the estimated annual cost for a typical household using Direct Debit for energy payments will be lower from October 1. For more details, you can read about the review and the recent changes in how Typical Domestic Consumption Values are calculated.
For information on typical annual usage figures for gas, electricity single rate, and multi-rate (e.g., economy 7), as well as insights into the calculation of average gas and electricity usage, please refer to the relevant documentation.
For information on typical annual usage figures for gas, electricity single rate, and multi-rate (e.g., economy 7), as well as insights into the calculation of average gas and electricity usage, please refer to the relevant documentation.
The announcement regarding changes to the energy price cap for the period from October 1 to December 31, 2023, was made on August 25, 2023. Notably, the Typical Domestic Consumption Values have been updated to reflect reduced energy usage by households. Consequently, while the energy price cap unit rates announced on August 25 remain unchanged, the estimated annual cost for a typical household using Direct Debit for energy payments will be lower from October 1. For more details, you can read about the review and the recent changes in how Typical Domestic Consumption Values are calculated.
For instant comparison click her.
To get appointment click here.