What is the energy price cap?
The cap is a government protection, calculated by the energy regulator Ofgem. This cap is on the kilowatt hour (kWh) of energy you use.
The price cap protects around 29 million customers on default or variable rates.
The energy cap from 01 July 2023
Yesterday Ofgem announced a change to the energy price cap.
Electricity will be 30p per kWh with a standing charge of 53p per day.
The equivalent per unit level for a typical electricity muti-register customer is 29p per kWh, with a standing charge of 53p per day.
Gas will be 8p per kWh with a standing charge of 29p per day.
For the average household bill will reduce by £426 (perversely if you use more energy than the average household you will save more due to the cap being on the (kWh) of energy you use.)
But the Government help of £400 (£66 a month) has stopped so it cancels out.
The current cap for the average household is £3,280 which will drop to £2,074 from 01 July 2023.
Wholesale prices are currently at their lowest levels since May last year, but prices are still very high.
Another drop is expected in October with a slight rise in January 2024.
Can you switch?
At the moment there are no deals. It was of course always advised to switch, but at the moment there is nothing. It is hoped however that from July we might start to see some competition come in but it will be very slow and limited.
Talking on The Nine BBC Scotland regarding the energy cap
The Energy price cap drop
Help with energy bills
If you’re on prepay, check that you have received and redeemed all of your vouchers. Over 2.1 million prepayment vouchers delivered under the scheme are still to be redeemed. You have until 30 June 2023 to claim.
If you didn’t get the £400 support automatically through your electricity supplier (such as those who live in a park home or those who have a landlord with a commercial energy contract, rather than a domestic one) you can apply to receive the discount through the Energy Bills Support Scheme. You’ve got until 31 May to apply.
If you are really struggling to pay your energy bills, notify your supplier as soon as possible because you may be able to set up a payment plan.
Ofgem provides help with links from its page Getting help if you can’t afford your energy bills. Its rules state that suppliers must work with you to help you if you are in financial difficulty.
This might include setting up a payment plan, payment breaks, more time to pay, access to hardship funds or providing details to the Priority Register. If you are vulnerable you should be on your supplier’s list.
There may also be access to hardship funds and grants from various other organisations. You may also be able to get 60 days’ space from creditors to focus on getting debt advice and setting up a debt solution.
You can also get debt advice from Citizens Advice, StepChange and National Debtline.
Go to Turn2Us who provide information and advice on what help is available including charities that will help you pay your bills.
Further help with energy
How to save money on and complain about, energy – contains links to various helpful posts about any issue you may be having with your supplier, your rights, how to get it sorted and gain redress.
Sara Williams on The Complaining Cow Consumer Show
I spoke to Sara Williams from DebtCamel about debt management and what consumers can do on on my East London Radio The Complaining Cow Consumer Show. She also advises on where not to go for help and what to avoid, especially scams.
Ed Dodman Director of Regulatory Affairs at Ombudsman Services which runs the Energy Ombudsman scheme on The Complaining Cow Consumer Show
Ed talks about the role of the Energy Ombudsman, the most common complaints, the work it does, how it can help you and how best to complain when going to the Ombudsman
Further ways of saving money
Ways to save money various posts on how to save money on shopping and services.
