What is the Energy Price Cap and How are Utility Bills Affected?

A further increase in gas and electricity bills has been confirmed for the upcoming year, as energy regulator Ofgem has announced its latest price cap for January.

People are advised to provide a meter reading when prices adjust to ensure they are charged the correct amount.

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What is the Energy Price Cap?

The energy price cap applies to 26 million households across England, Wales, and Scotland and is determined quarterly by Ofgem.

It sets the highest price allowed for each unit of energy under a standard or default tariff for an average dual-fuel household.

The cap fell in April and July 2024, but rose again in October and is expected to increase further in January.

What is a typical household?

Your energy bill is influenced by the total gas and electricity you consume and your payment method.

The kind of property you live in, its energy efficiency, the number of occupants, and the weather all affect your bill.

The Ofgem cap is calculated for a "typical household" that uses 11,500 kWh of gas and 2,700 kWh of electricity annually, paid through a single direct debit for both gas and electricity.

Taking a meter reading:

Submitting a meter reading when the energy cap is changed means you won't be charged for estimated usage at the wrong rate.

This is even more important when prices increase, so it could be worth looking into this in the coming months.

This does not apply to customers with working smart meters, as readings are taken automatically.

Conclusion:

With the potential increase in energy prices in the coming months, it is important to keep up to date. Taking meter readings can help you ensure you are not charged the wrong amount, however this can only take you so far.

Investment in Solar PV systems allows you to place less reliance on the grid, meaning that you are less affected when prices fluctuate.

Enquire today at contact@greensolarfootprint.co.uk to find out how you can benefit.