The October 2024 energy price cap will be in place from October 1st 2024, controlling customer’s energy prices and standing charges on standard variable tariffs.
The new price cap will raise energy bills for average consumers by 10%. Your actual bill will, as ever, be determined by the amount of gas and electricity you use. This means you can still cut your energy bills by reducing your home power usage.
How much will my bills be? Find out with our Utility Bill Calculator ›
What is the energy price cap?
The energy price cap is a maximum limit set on the amount energy companies can charge customers on standard variable tariffs. This includes customers whose previous fixed rate tariffs have expired and anyone moving into a new home who has not switched to a fixed tariff.
Energy regulator Ofgem adjusts the price cap every 3 months, in January, April, July and October. The cap is raised or lowered based on the wholesale price of energy. While bills fell by 7% in July, they will rise by around 10% from October 1st. Currently, analysts predict the price cap will rise a further 3% in January.
What will the October 2024 energy price cap be?
Under the October 2024 price cap, the average UK household will pay £1,717 a year for gas and electricity, up 10% from the July price cap average of £1,568.
The individual unit rates and daily standing charges will be as follows for domestic UK customers:
Â
|
 |
Gas |
Electricity |
|
Unit Rate |
6.21 p/kWh |
24.50 p/kWh |
|
Daily Standing Charge |
31.41p31.66p |
60.99p |
Figures are rounded to two decimal places and based on the average for people in England, Scotland and Wales average paying by Direct Debit. These prices include VAT. Unit rate prices shown are in pence per kilowatt-hour
Why should I fix my energy prices?
A fixed energy tariff is an alternative to the standard variable tariffs affected by the October 2024 price cap change. Under a fixed tariff, your per unit energy prices and standing charges stay the same for the length of your contract.
This protects you from price rises like the ones happening in October and predicted in January. That means that if you can find a fixed-rate tariff that’s the same or lower than the new price cap you’ll be paying below market rates in the new year.
Looking further forward, a fixed rate tariff protects you from the uncertainty of a sudden bill hike such as the one that resulted from the UK energy crisis in 2021.
How can I switch to a fixed energy tariff?
Switching energy tariffs is simple, free and only take a few minutes. You can book a free call with one of our Connections Experts to have them take you through the whole process.
If you prefer to switch online, you can set up a great value tariff with our partner Octopus Energy at their website. Octopus has been ‘Which?’ UK’s number one recommended supplier for the last 7 years.
Take meter readings before the October 2024 price cap change
Even if you’re not planning on switching energy tariff, be sure to take meter readings and submit them to your supplier before October 1st.
Meter readings let your supplier know how much energy you’ve used up to a certain date. Supplying a reading lets your energy supplier know how much gas and electricity you used at the cheaper rate. Otherwise, you can be charged the higher price your energy before the switch.
