Announced earlier this week, OFGEM confirmed the new price cap is set to start from October 1st 2023. The new cap of £1,923 per year for a typical household in the UK sees a slight decrease from the previous price cap, of around 7% on average.
A clear reflection of the recent fall in wholesale energy prices means the price cap has been lowered around £150 per year for the typical household across the UK.
It is worth noting that the Energy Price Cap only lasts 3 months and will be reviewed again shortly with the next cap predicted to rise in January 2024. The price caps are changed in January, April, July, and October.
These changes are largely based on the costs that the supplier faces in the process of providing energy for consumers.
Below is a table from Money Saving Expert showing the current, future and predicted Energy Price Cap changes.
The amount you pay will, of course, depends on your actual household usage, where you live, along with the meter payment type.
Standard variable tariff customers, which make up 90% of UK households, can see a fall in unit rates. The figures are as follows for the daily charges along with unit rates.
|Current energy price per kWh||New energy price per kWh(From October 1st)|
|Electricity||£0.30 per kWh £0.53 daily standing charge||£0.27 per kWh £0.53 daily standing charge|
|Gas||£0.08 per kWh £0.30 daily standing charge||£0.07 per kWh £0.30 daily standing charge|
You may notice that the standing charge has not been reduced at all, nor did they on the previous price cap. To find out more on why standing charges are what they are, and why they’re not changing at the moment. Read our blog here.