Ofgem Announces Summer Price Cap Reduction

Last updated: May 29, 2024

Ofgem has confirmed the energy price cap for July to September, featuring a 7% reduction versus the prior quarter.

This Ofgem energy price cap cut translates to the following average changes for customers:

  • Household paying by direct debit for dual fuel – £1,690 to £1,568 (£122 reduction)
  • Household paying by prepayment meter for dual fuel – £1,643 to £1,522 (£121 reduction)
  • Household paying for dual fuel by standard credit – £1,796 to £1,668 (£129 reduction)
  • Household paying by Economy 7 (direct debit) – £1,125 to £1,037 (£87 reduction)

The standing charge, being £334 for dual fuel customers and £369 for standard credit paying customers is set to remain unchanged from the previous period.

With more specific considerations, the Ofgem price of electricity per unit and standing charge will fall from £0.245 per kWh to £0.2236 per kWh. On the other hand, the pricing for gas will drop from £0.0604 per kWh to £0.0548 per kWh.

This coming quarter will follow up on falling prices from the prior quarter, representing a trend toward lower energy bills in the UK. That said, Ofgem has warned that bills will likely not fall in the medium term. This hints at the lowering price trend potentially plateauing soon.

The trend almost remains up in the air because of energy price uncertainty persisting. The precarious position continues to be fueled by the Russian invasion of Ukraine and ongoing geopolitical tensions.

Ofgem will announce the next energy price cap change on Tuesday, August 27th. This will cover the period of October to December 2024.

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