October 2024 Energy Price Cap

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For the period of 1st October 2024 to 31st December 2024 Ofgem has announced a rise in the energy price cap. This means the typical annual household bill will be around £1717 a year, an increase of £149 from the June-Septemeber figure of £1568 a year. This works out to be an increase of around 10%. 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.

The Price cap is actually 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 October 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

23.96p per kWh unit rate & 64.17p per day standing charge

Gas

6.16p per kWh unit rate & 31.80p per day standing charge

 

Prepayment Meter

Electricity

23.14p per kWh unit rate & 64.17p per day standing charge

Gas

5.91p per kWh unit rate & 31.80p per day standing charge

 

Standard Credit

Electricity

25.21p per kWh unit rate & 70.16p per day standing charge

Gas

5.68p per kWh unit rate & 35.25p per day standing charge

 

Comparison to previous price caps

Energy prices fell over the summer are back to a similar level to last winter. The average tariff is smuch higher than what we were paying before the energy crisis.

There is no longer any government support, last year’s Energy Bill Support Scheme ended and the Cost of Living payments have finished. So whilst prices are comparable, if you received this support last year, you may find your budget is still stretched. Older people may also no longer receive the Winter Fuel Payment unless they receive Pension Credit.

Households may be eligible for the Warm Home Discount when it opens again in the autumn.

 

Should I Switch?

Ofgem has currently implemented a ‘Market Stabilisation charge’. 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. You may be able to save a small amount by switching, however as the price cap is changing every 3 months it’s very hard to predict whether this will save you money, or cost you more.

We’d currently recommend checking out the Money Saving Expert guide which lists the pro’s and con’s of all currently available tariffs.

 

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.

Ofgem is consulting on ending the  ‘Market Stabilisation charge’. 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. But you may be able to switch again later in the year.

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, the £28 a year charge to each customer’s bill to help suppliers deal with the high volume of energy debt is still included. 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.

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