Understanding October’s Energy Price Cap

On October 1st 2024, Ofgem increased the energy price cap. Find out who is affected and how.

2 mins read

Ready for the details? Here’s what’s new!

Energy regulator Ofgem has released the updated energy price cap figures from October 1st 2024. The changes have come about after a rise in wholesale energy prices (electricity and gas) which has resulted in higher standing charges and new unit rates.

From today, 1 October 2024, the energy price cap for a typical household that uses gas and electricity and pays by Direct Debit will go up from £1,568 to £1,717 per year. This is an increase of around 10% which adds around £12 a month to an average bill.
From Ofgem

The electricity daily standing charge is 60.99 pence per day. And you will now pay on average 24.50 pence per kilowatt hour.
The gas daily standing charge is 31.66 pence per day. And you will now pay on average 6.24 pence per kilowatt hour.

Who will the price cap changes affect?

If you are on a variable tariff, you may be affected by the rise in price cap. The price cap specifically applies to variable tariffs because they aren’t fixed against the volatility in the energy markets. Unlike fixed tariffs, those on variable tariffs are susceptible to price changes month-by-month depending on unit rates for gas and electricity. As the market price for gas and electricity rises, your variable tariff will see rises too.

To make the most of your energy use, Retrofit West can help you make your home more energy efficient, contact our free advice line today.

Should I switch to a fixed tariff instead of a variable tariff?

It’s always good advice to keep an eye on the energy price market and search for cheaper energy deals – especially in a Cost of Living Crisis. Changing to a fixed tariff from an expensive variable tariff could be the answer so you know for certain what you’ll pay each month, which helps you plan your spending. However, be aware of exit fees when entering into a contract as you may not be able to switch plans if prices drop and you want to change. Energy price comparison sites (such as USwitch) can be useful when identifying the cheapest deal in your area. There are also changes you can make to your energy usage habits to save on your energy bills.

When do the changes get reviewed?

Energy regulator Ofgem reviews the standing charges (what you’ll pay before using any energy) and unit charges every 3 months. The levels for the next period (1st January – 31st March 2025) will be published by 25th November 2024.

What’s the forecast for energy changes ahead?

Predictions from MoneySavingExpert indicate that the price cap will rise again in the next period (by about 3%). The energy price forecast beyond March 2025 is highly uncertain as it is difficult to know with precision how the energy price markets will behave.

You can ensure that the energy you do pay for is maximised by improving your home’s energy efficiency. Claim your 70% off voucher for a home energy assessment and start your journey to a more sustainable future today.

What support is available for those struggling to pay their bills?

Winter Fuel Payments, if you were born before 23rd September 1958
Warm Home Discount Scheme, reopening in October 2024
Search for the ‘Household Support Fund’ in your local area
Contact the Centre for Sustainable Energy‘s Advice Line on 0800 082 2234
Contact your energy provider, they could provide you a payment plan
Seek debt advice from services such as StepChange or National Debtline

Ready to Reduce your Energy Bills?

Take the first step today. Call the free Retrofit Advice Line on 0800 038 6733, or email advice@retrofitwest.co.uk to take your first step towards a more sustainable and energy-efficient future.