Act now before the 5% price cap rise in January 2024.
The Energy Price Cap is set to rise by 5% on 1 January 2024, to £1,928 a year for a typical dual-fuel household paying by direct debit. (Martin Lewis, Money Saving Expert)
What is the Energy Price Cap?
Ofgem, the UKs regulator for Gas and Electricity, introduced the Energy Price Cap in January of 2019. The scheme was implemented to help millions of households on variable rate electricity tariffs, from being charged extortionate amounts every year. The Price Cap limits the amount you pay per unit of Gas and Electricity, along with setting a maximum rate of Standing Charge*.
*Standing charge is the daily fee paid to connect your home to the grid.
As of 1st January 2024, the energy price cap will rise by 5%. Price Caps are reviewed and updated every three months, and this upcoming change will see an average yearly utility bill go from £1,834.00 to £1,928.00.
Why should I worry?
It’s only 5%, why should I worry? Correct, it is a small increase, however increases in Utility bills are unnecessary and can be reduced by up to 80%, by installing Solar Panels and Battery Storage.
By taking the plunge and installing renewable energy sources at your property, you reduce your reliance on the grid. Of course, we’re talking about Electricity here and not gas, but by installing Solar and harnessing excess energy in a battery, you enable yourself to explore going all electric with your appliances.
As you may know, the Energy Price Cap fluctuates, going up and down, every 3 months. But why should you go from paying X amount in one month to it spiking later on in the year? You wouldn’t enter into a phone contract where the price changes every month, would you?
How much could I save with Solar & Battery?
The big question. We’re warning you of the price cap increase, promoting the benefits of Solar and Battery to save money. But how much could you save? Well, at Pure Energy, we’re able to provide realistic figures and return on investment periods, based on your electricity consumption, household profile (how many people live at the property and how often you’re at home), and because we’ve helped over 7,500 people across England and Wales to date.
An average household in England and Wales, using 3,500kWh of electricity every year, can expect to save up to 80% on their electricity bills*, with a return on investment period of 4-7 years.
*Customers that install Solar and Battery Storage.
How long does the Price Cap last for?
As mentioned, the Energy Price Cap changes every quarter. January to March, April to June, August to September and October to December. The new Price Cap for January 2024, which will rise by 5% compared to October – December 2023, will run from January 1st 2024 to March 31st 2024.
Predictions on the Price Cap for the rest of 2024 show that the Daily Standing Charge will be an average of 60.25p, not dropping below 60p for the entire year.
| 1st October 2023 – 31st December 2023 | 1st January 2024 – 31st March 2024 | |
| Price Cap Level | £1,834.00 | £1,928.00 |
| What customers pay | £1,834.00 | £1,928.00 |
Price Cap Dates
1st April 2024 – 30th June 2024: Announced by 23rd February 2024
1st June 2024 – 30th September 2024: Announced by 28th May 2024
1st October 2024 – 31st December 2024: Announced by 27th August 2024
Other interesting reads…
Check out one of our other blogs, which details the benefits of Solar and Battery Storage in the Winter.
