Business Gas

The new energy price cap level starts today Update from OFGEMStarting 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.

Changes to energy price cap between 1 October to 31 December 2023 The maximum allowable rates for energy suppliers to charge per unit of energy undergo a periodic review every three months. Starting from October 1, 2023, there will be a decrease in the annual energy cost for a typical household that uses both gas and electricity and pays through Direct Debit, bringing it down to £1,923 per year.The adjustment in the energy price cap considers the energy consumption patterns of an average household. More information about typical household energy consumption and the methodology used to calculate the price cap can be found on our page explaining average gas and electricity usage.The energy price cap is determined by various components, including the wholesale costs of gas and electricity, network supply costs, and VAT. Under the energy price cap, energy suppliers are allotted a margin for profit, excluding interest and taxes, above and beyond their energy supply costs.Starting from October 1, 2023, this profit margin allowance will increase by an average of £10 per customer annually. Ensuring reasonable profits is crucial for the energy sector as it enables suppliers to invest in improving customer service and care. It also allows them to use pre-tax income to offset potential increases in energy prices, reducing the risk of insolvency. This reasonable profit allowance aims to enhance financial stability among energy suppliers and safeguard consumers in the future.You can review the price cap levels for October to December 2023 and compare them with those from July to September 2023. Additional information about the price cap policy is available.For individuals who use prepayment meters to pay for their energy, there are policy changes effective from October 1, 2023. These changes will reduce their annual costs by £42. Additionally, a 12-month allowance will be introduced to cover increased debt costs associated with providing extra support credit to individuals at risk of having their energy supply disconnected due to their inability to top up their meter.Despite these adjustments, the price cap for prepayment meters will remain higher than that for Direct Debit payments. However, the government will provide support through the Energy Price Guarantee until the end of March 2024 to bridge this difference. Beyond that period, thegovernment is seeking input on how to equalize standing charges for those using prepayment meters or Direct Debit payments. This change is expected to be implemented by April 2024. Your feedback on this matter is welcome through the standing charges lateralization consultation. For instant comparison click her. To get appointment click here.

Navigating the Realm of Utilities: Helpful Guides and Tips Our commitment to maximizing your savings extends well beyond simply switching suppliers. We’ve dedicated this section to empower you in navigating the intricacies of energy, business water, business connectivity, and other valuable insights from our experts to enhance your utility cost savings. This section will demystify energy tariffs, delve into economy 7, explore business broadband, address business water concerns, and everything in between. As your business evolves, so do your requirements. This section is an ongoing resource for you, offering valuable insights into managing your essential business needs. With the knowledge gained from our content hub, you’ll be well-equipped to make informed decisions regarding the best products, tariffs, and suppliers for your business. For instant comparison click her. To get appointment click here.