January 2024 Energy Price Cap Announcement

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From 1st January 2024 until 31st March 2024 Ofgem has announced a rise in the energy price cap. This means the typical annual household bill will be around £1,928 a year. This works out to be an increase of around 5%. It’s important to note that the annual consumption for a typical home is now calculated using lower figures than previously.

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, a cost per kWh of energy you use and a daily standing charge.

 

From 1st January the average tariff in the UK will be:

Please note costs can vary on region and may vary slightly from what is represented below

Tariff Table

 

Direct Debit

Electricity

28.16p per kWh unit rate & 62.08p per day standing charge

Gas

7.37p per kWh unit rate & 29.60p per day standing charge

 

Prepayment Meter

Electricity

27.72p per kWh unit rate & 68.94p per day standing charge

Gas

7.19p per kWh unit rate & 40.42p per day standing charge

 

Standard Credit

Electricity

29.64p per kWh unit rate & 69.21p per day standing charge

Gas

7.85p per kWh unit rate & 34.97p per day standing charge

 

For further details on the changes in the energy price cap, please visit the Ofgem announcement page.

 

Comparison to last Winter

While there has been a fall in the energy price cap, our energy costs are still significantly higher than prices we paid 2 years ago for our energy.

Most households are unlikely to see any significant change to what they were paying for their energy last winter. This is because the £400 Energy Bill Support Scheme, paid out as a £66 monthly payment last winter, is not returning this year. In fact, most households will be paying more for their energy this Winter, than last.

 

What support is available

Some people may receive some support from the Government in the form of Cost of Living Payments to help with the higher cost of living. Visit our energy advice guide for more information on these.

Applications for the Warm Home Discount are open for most suppliers. Check if you’re eligible in our guide here.

 

Get Advice

Worried about the price rise? 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: