Energy prices are going down!

Ofgem has announced a 12.3% reduction in the energy price cap, effective from 1st April (and it isn’t an April Fools prank).

This decrease brings annual bills down to £1,690, the lowest level since the surge caused by the Ukraine invasion in February 2022.

Prices falling

From 1 April to 30 June 2024 the price for energy a typical household who use electricity and gas and pay by Direct Debit will go down to £1,690 per year. This is £238 per year lower than the price cap set between 1 January to 31 March 2024 (£1,928). 

You are covered by the energy price cap if you pay for your electricity and gas by either: 

  1. standard credit (payment made when you get your electricity and gas bill) 
  2. Direct Debit 
  3. prepayment meter 
  4. Economy 7 (E7) meter 

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have. 

Energy price cap rates 1st April to 30th June 2024 

Electricity rates 

If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 24.50 pence per kilowatt hour (kWh). The daily standing charge is 60.10 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.

Gas rates 

If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.04 pence per kilowatt hour (kWh). The daily standard charge is 31.43 pence per day. This is based on the average across England, Scotland and Wales and includes VAT. 

Please click here to get in touch with us if you would like us to compare tariffs for you and to get you a fix once the prices have fallen in April.

Other changes to help energy customers 

From 1 April 2024, Ofgem will extend, for another 12 months, a ban on short-term discounted tariffs intended to attract customers from other suppliers. This ban called the ‘ban on acquisition-tariffs’ has been in place since April 2022.

Also, energy suppliers will have five days instead of 15 days to move you from your old energy supplier if you decide to switch to a new energy supplier. If they do not meet the five day deadline they will have to pay £30 in compensation to the customer.