On 23 November 2023, Ofgem announced its next quarterly update to the energy price cap. For the period 1 January to 31 March 24, the energy price cap will increase by 5% to £1,928 for a typical dual fuel household* paying by Direct Debit; an increase of £94 over the course of the year – around £7.83 a month. This price increase is driven almost entirely by rising costs in the international wholesale energy market due to market instability and global events, such as the conflict in Ukraine.
The Ofgem price cap and the EPG work together to protect consumers. Due to soaring energy costs last year, the EPG temporarily applied a discount to reduce household bills.
To ensure that customers with a prepayment meter pay the same or less for their energy than those who pay by Direct Debit, the EPG will continue to be applied to Pay As You Go prices from 1 January until 31 March 24. This means the annual bill for a typical dual fuel household* who pay by Pay As You Go will be £1,917*.
The energy price cap sets a limit on the amount that energy suppliers can charge you for each unit of gas and electricity, and also sets a maximum daily standing charge.
If you are on one of our standard variable or default tariffs or are a PAYG customer with a prepayment meter, then the energy price cap will automatically apply. If your prices need to increase as a result, there’s no need to contact us. We’ll write to you by letter or email to let you know what your new prices will be before the change takes place.
If you are on one of our fixed price or flexi tariffs, the price cap does not apply for the duration of the tariff. Check a recent bill or your online energy account if you’re not sure what tariff you’re on.
The price cap only applies to domestic customers.
*A typical dual fuel household is defined as one that uses 11,500 kilowatt hours of gas a year, and 2,700 kilowatt hours of electricity a year.
Last updated: 27 November 2023