Energy Price Cap Update – July 2024
The Energy Price Cap, which regulates household energy costs in England, Scotland, and Wales, decreased by 7% on July 1st. This reduction will impact most households, potentially lowering their energy bills. However, your actual costs depend on three key factors: energy usage, payment method, and location.
Understanding the Energy Price Cap
Introduced by Ofgem in January 2019, the Energy Price Cap aims to protect consumers on variable tariffs from excessive charges. It sets limits on:
- What you pay for each unit of gas and electricity that you use
- Maximum daily standing charges
The cap is primarily based on wholesale energy prices and applies to standard and default tariffs, which most households currently use.
Latest update: July 2024
As of July 1st, the Price Cap for a typical household paying by Direct Debit has fallen to £1,568 per year. Remember:
- This figure is based on average usage
- Actual bills may vary depending on consumption
- The cap applies to rates, not total bills
Are you overpaying?
If you’re concerned about high energy costs or struggling to pay your bills, help is available. Our Money Advice team can offer advice and assistance over the telephone as well as in person. Find out more here.
Email: money.advice@jjhousing.co.uk
By understanding these changes, you can better manage your energy costs and ensure you’re not overpaying for essential services.
Useful links
Energy Price Guarantee – GOV.UK (www.gov.uk)
New energy price cap level for July to September 2024 | Ofgem