New household energy price cap comes into effect

The new reduced energy price cap has come into affect for homes across the UK.

This will mean a reduction in the rate that a household will pay for both electricity and gas for the next 3 months.

It can be slightly confusing as the regulator Ofgem publishes what this will mean for a “typical household” as a cost per year, but most households will fall outside of what is termed typical.

The most important thing is that no matter how much energy you use at home, the price you pay for every unit will be about 7% less for the next 3 months, from 1st October trough to 31st December 2023.

However it must be noted that despite the the drop in household energy prices, bills still remain much higher than pre-energy price crisis levels.

A new price cap level will be announced as we approach the end of this period and will come into affect from 1st January 2024 for a further 3 month period.

The other important thing to remember is that a business customer is not protected or affected by the changes to the household energy price cap.

Business electricity and gas retail prices change every day based on changes to the wholesale price.

You can track wholesale energy trends and also see the latest electricity and gas retail prices for your meter on our website.