|8 minute read time
Watt's happening with the energy price cap?
Written by Herman Khosah, marketing advisor
The energy price cap fell by around 7% on 1 October 2023 from £2,074 to £1,923 a year. This is for a typical household with electric and gas that pays by direct debit.
What is the energy price cap?
Some people think the energy cap is the maximum you could spend on energy bills per year, but this is not the case. It is the limit an energy company can charge you for standing charges and per unit of energy you use.
Your energy bills could end up being more or less than this depending on your energy usage. Every household is different, so please keep an eye on your usage.
The energy price cap only applies if you’re on a standard tariff that you pay by direct debit, standard credit, or a prepayment meter, it does not apply when:
- You are on a fixed-term energy tariff
- You are on a special time or green energy tariff
What is the current energy price cap?
The current energy price cap is £1,923 and is expected to be reviewed every three months going forward, the next changes are expected at the beginning of January.
Here is a look at the average price per unit you will expect to pay:
£0.27 per KWh
Daily standing charge £0.53
£0.07 per KWh
Daily standing charge £0.30
What is the daily standing charge?
The daily standing charge is a fixed daily charge you pay for energy no matter how much you use.
Who is my gas and electricity supplier?
It is important to find out who your energy supplier is so you can work out who to pay and what energy tariff you are currently on.
Use the following ways to find out who your current energy supplier is:
Use the Find My Supplier free service or call the Meter Number Helpline on 0870 608 1524 (calls cost 7p per minute).
Contact your local electricity distribution company to find out who your electricity supplier is.
How to save on your energy bills in the home
Here are a few simple ways you can save on energy in your home and reduce your energy bill.
- Do not overfill the kettle, it might seem small but only boiling what you need will help save money and energy
- Never leave your TVs, computers, or stereos on standby, you are wasting a surprising amount of electricity by doing this
- Turning your thermostat down by just one degree could cut your heating bills by a whopping 10%
- Always cook food with the lids on. This saves heat and allows you to cook food faster using slightly lower temperatures, meaning you use less energy
- Turn off lights in rooms you’re not using. It is an easy thing to forget and can make all the difference to your bills
- Check out these other energy saving tips that could help you save money on your energy bills
(Originally published August 2023. Updated with current information).
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