Energy regulator Ofgem has today (Friday 24 May, 2024) confirmed
the energy price cap for the third quarter of 2024.
The price cap, which sets a maximum rate per unit that can be
charged to customers for their energy use, will fall by 7% from 1
July to 30 September 2024, compared to the previous quarter. For
an average household paying by direct debit for dual fuel this
equates to £1,568, a drop of £122 over the course of a
year.
The average household paying by prepayment meter for dual fuel
will pay £1,522 over the course of a year. The average household
paying for dual fuel by standard credit will pay £1,668 over the
course of a year.
The price cap set by Ofgem assumes a standing charge of £334 for
a dual fuel customer (£369 for those who pay by standard credit).
This is unchanged from the last price cap period.
Suppliers may offer a lower standing charge for their default
tariffs under the price cap but to raise the unit rate above that
assumed in Ofgem's price cap, they need to demonstrate that the
overall amount charged to consumers is at or below the total
price cap.
Suppliers are free to offer fixed tariffs with a different
balance of standing charges and unit rates and many do so.
Notes to editors
Energy price cap |
Ofgem
The energy price cap was introduced by the government and has
been in place since January 2019, and Ofgem is required to
regularly review the level at which it is set. It ensures that an
energy supplier can recoup its efficient costs while making sure
customers do not pay a higher amount for their energy than they
should. The price cap, as set out in law, does this by setting a
maximum that suppliers can charge per unit of energy.
Updated number of customers on different tariff types as
of April* 2024
New no. of customers on SVT's – ‘around 28 million' of
which:
- New no. of SVT Direct Debit customers – ‘around 18 million'
- New no. of SVT Standard Credit customers – ‘around 5
million'
- New no. of SVT PPM customers – ‘around 4 million'
Total number of customers on fixed tariffs ‘around 4 million'
(with the vast majority being non-PPM)
*Latest Financial Responsibility RFI data is for April-24. Tariff
and customer Account RFI data is as of April-24 (used to
calculate the SVT payment splits).
