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Support with rising living costs: Supplement to Saving Energy and Money Guide
Energy Price Cap
If you’re on a standard tariff, you’ll be paying the Energy Price Cap set by Ofgem. The Energy Price Cap rates are the maximum amount you’ll pay per unit of gas or electricity. will rise by 5% on average from 1st January 2024.
The price you pay is dependent on how you pay and the area of the UK you live in.
The following rates are the capped Energy Price Cap unit rates for payment by direct debit for households in the South West from 1 January to 31 March 2024:
Electricity Unit rate: 28.43p per kWh
Standing charge: 58.68p per day
Gas Unit rate: 7.62p per kWh
Standing charge: 29.59p per day
From 1 January 2024, a typical household paying by direct debit will pay £1,928/year, which means average bills will rise by 5%.
Energy Tariffs - stick or switch?
According to forecasts, rates under the Energy Price Cap are predicted to fall in April 2024. Most fixed deals available are all around the same price, due to the price cap. Serious consideration needs to be given as to if there are any significant savings in switching before the Energy Price Cap rate rises from 1 January 2024:
Check your current supplier's fixed energy deals. See how the fixed rate compares with the current Energy Price Cap rate.
If the fixed rate is around 1% above the October to December Energy Price Cap rate, or the same or just under, then it may be worth considering switching if you value price certainty or if you’re thinking of switching due to customer service issues.
Check with your current supplier if there are any exit fees to pay if you end your contract early.
If you are at all uncertain, contact your energy supplier to discuss your options.
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