From 1st April 2024 until 30th June 2024 Ofgem has announced a fall in the energy price cap. This means the typical annual household bill will be around £1690 a year, a reduction of £238 from the January-March figure of £1,928 a year. This works out to be a decrease of around 12%. It’s important to note that the annual consumption for a typical home is now calculated using lower figures than in 2023.
The energy price cap is represented as an annual bill based upon 2700kWh of electricity and 11500kWh of gas usage per year. This has fallen from 2900kWh electricity and 12000kWh gas. Most households are unlikely to be on a typical usage and the actual cost will vary depending on your consumption. Many households in Scotland are likely to have higher typical usage than the UK average due to our colder climate.
What the price cap actually is: a cap on the tariff suppliers are able to charge you. This is the unit rate, the cost per kWh of energy you use and a daily standing charge.
Tariff Table
From 1st April the average tariff in the UK will be:
Please note costs can vary on region and may vary slightly from what is represented below
Information is extracted from the Ofgem website here.
Direct Debit
Electricity
23.97p per kWh unit rate & 63.31p per day standing charge
Gas
5.96p per kWh unit rate & 31.67p per day standing charge
Prepayment Meter
Electricity
23.20p per kWh unit rate & 63.31p per day standing charge
Gas
5.72p per kWh unit rate & 31.67p per day standing charge
Standard Credit
Electricity
25,24p per kWh unit rate & 68.97p per day standing charge
Gas
6.27p per kWh unit rate & 35.21p per day standing charge
Comparison to previous price caps
While a fall in the price cap is very welcome, prices are still more than what we were paying before the energy crisis. The average tariff is still in the region of £600-800 a year more than the previous ‘normal’ tariff cost.
There is no longer any government support, last year’s Energy Bill Support Scheme ended and the Cost of Living payments have finished.
Households may be eligible for the Warm Home Discount when it opens again in the autumn.
Other Ofgem announcements
Standing charges for prepayment customers are now the same as those paying by direct debit, previously prepayment customers were charged an unfair ‘prepayment premium’ which resulted in standing charges being noticeably higher.
While the price cap has fallen, standing charges for direct debit and standard credit customers have increased. This is the flat daily rate you pay to your supplier which makes it more difficult to save money by making your home more energy efficient.
Ofgem has extended the ‘Market Stabilisation charge’ for an additional 12 months. This is preventing suppliers from offering cheap fixed-price deals that they typically use to attract new customers. It’s unlikely you’ll see any noticeable savings by switching energy suppliers.
As of April 1st, if you do choose to switch suppliers it will only take 5 days for the switch to be processed, down from 15.
While the prices have decreased, Ofgem has added a £28 a year charge to each customer’s bill to help suppliers deal with the high volume of energy debt. If you’re in arrears please read our Dealing with Debt guide here.
Get Advice
Worried about energy prices or debt? Our energy advisors can provide free and impartial advice to anyone in Fife. Get in touch to arrange a home visit or telephone advice appointment to see what you can do to save energy at home.
Our energy advisors can be contacted by:
- Calling 01592 807930
- Texting COSY then YOUR NAME to 88440
- Emailing info@cosykingdom.org.uk
- Request advice online