What Is The Energy Price Cap And How Are Gas And Electricity Bills Changing?

28th December 2024

Gas and electricity bills are going up again on 1 January, when the latest energy price cap takes effect.

Billpayers are encouraged to submit a meter reading when prices change to ensure they are charged the correct amount.

What is the energy price cap and how is it changing?
The energy price cap covers 26 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem.

It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit.

The cap fell in April and July 2024, but increased in October.

Between 1 January and 31 March 2025, gas prices will be capped at 6.34p per kilowatt hour (kWh), and electricity at 24.86 per kWh., external

This means the annual bill for a dual-fuel direct debit household using a typical amount of energy will go up to £1,738 per year, an increase of £21 from the previous cap.

Read the full detailed BBC article HERE

More details at OFGEM

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