The energy price cap limits how much energy companies can charge per unit of energy on their standard and default tariffs. This affects up to 28 million households across England, Wales and Scotland whose bills can change up to every three months, based on determinations by Ofgem, the energy regulator.
Photo by Arthur Lambillotte on Unsplash
The latest price cap rise
It’s gone up
On the 1st of October 2024, the energy price cap saw a massive 10% leap. Therefore, a typical household will now pay circa £1,717 for their dual-fuel (gas and electricity) bills this year, an increase of nearly £150.
It is important to remember, however, that this is not the maximum price that households will pay, as depending on their usage, their bills could be drastically higher.
Ways to manage your energy bills
How to control energy bills
It is important to take regular meter readings to track your usage and submit these to your energy company to ensure that your bills are accurate. It is of particular importance to submit meter readings before each energy price cap change to avoid being overcharged for use from before a rise.
Your gas meter will be secured within a gas meter box on your property to protect it from the elements. If your gas meter box is damaged or cannot be secured to prevent tampering, you should consider replacing it. Suppliers such as https://www.meterbox.co.uk/gas-meter-boxes stock a wide range of gas meter boxes to suit all needs and budgets.
You could consider swapping from a tracker to a fixed-rate contract. There are some fixed-rate deals available that are lower than the current energy price cap. However, you should always ensure that the deal you choose suits your personal circumstances before switching, as once you do, you will be locked in for the duration of the contract term.
What might happen to the cap next
What will happen long term?
The price cap changes every three months. So although many speculate that it will decrease slightly in January, there is no way of guaranteeing this, and the further ahead you look, the greater the levels of uncertainty. Therefore, if you can fix it at a cheaper rate now, it may be worthwhile.
Summary
This article explains the UK energy price cap, which limits what suppliers can charge per unit on standard and default tariffs and affects up to 28 million households. It notes the cap rose 10% on 1 October 2024, taking a typical dual-fuel bill to about £1,717 a year, though actual bills depend on usage. It covers taking regular meter readings, securing your gas meter box, and weighing a fixed-rate deal against the cap’s uncertain future.
Questions this article raises
- How is the 28 million household figure calculated across England, Wales and Scotland?
- What happens to a fixed-rate deal if energy prices fall sharply after signing?
- How often should meter readings be submitted to avoid overcharging around a price cap change?
