There’s a lot of talk about the Energy Price Cap. But what exactly is it, and what difference will it make to your energy bills over the coming months?
Will the Energy Price Cap save you money this year?
Estimated reading time: 2 minutes
Energy bills: the good news
From 1 October 2023, the Energy Price Cap has been reduced by 7%. This means that the annual energy bill for a typical dual-fuel direct debit household in Great Britain will be around £1,923 (an average reduction of around £151 a year compared to the price cap set back in July).
Energy bills: the not-so-good news
Last winter’s Energy Bill Support Scheme ended in March 2023, which means that in real terms, bills will be bigger – especially as standing charges continue to remain high.
The next Ofgem review is due in January 2024, when the price cap is predicted to rise again. Ofgem is also redefining their definition of ‘annual typical use’ definition, which could make it seem like prices are dropping by more than they really are.