The energy price cap is set to rise by 10% for a typical household in October 2024. Find answers to all your energy price cap questions, including what the energy price cap is, how the changes might affect you, and where you can get help with energy bills, especially if you are worried about winter fuel payments.
What is the energy price cap?
The energy price cap limits how much energy suppliers can charge you for their default tariff (a basic tariff an energy supplier offers). This is controlled by Ofgem, the energy regulator.
How much you pay for your energy depends on how much you use, where you live, how energy efficient your house is, and the type of meter you own. As the rise in the energy price cap is based on each unit of energy rather than the final bill, some households with higher consumption may pay more.
Are energy prices going up?
Between 1 October and 31 December 2024, the energy price cap is set to rise by 10% for households that pay their gas and electric by direct debit, prepay, and pay on receipt of a bill. This means this means that for every £100 you spend on energy now, that will be £110 from 1st October. This increase is compared to the energy price cap that was set between 1 July to 30 September 2024.
Did you know?
You can use MoneySavingExpert’s Energy Price Cap Calculator to check how much more you will pay from October 2024.
What if I’m on a fixed term energy deal?
If you’re on a fixed term energy deal, then the energy price cap won’t apply to you, as it’s only for standard and default tariffs. Once your fixed term energy deal ends, you’ll be automatically switched to a price-capped tariff.
Can I be charged more than the energy price cap?
The energy price cap is different depending on whether you pay by direct debit, quarterly or after receiving a bill, and for those who prepay. However, the price cap limits what you pay for each unit of energy, as well as setting a maximum daily standing charge (the amount you pay for your home to access energy).
You may be paying more than the energy price cap if you’re on a certain tariff called a green deal. We recommend that you check your account to see which tariff you are on.
When is the next energy price cap review?
The energy price cap is reviewed every three months by Ofgem, the energy regulator company. For the next period (1 January to 31 March 2025) the new energy price cap will be updated and announced by 25 November 2024.
How can I get help with rising energy prices?
Understandably, winter can be a worrying time for some, especially with the October energy price cap going up and the eligibility changes to the Winter Fuel Payment. There are lots of ways to get support over the colder months for rising energy prices:
1. Get help with energy-saving improvements
If you get certain benefits or are on a low income, you might be eligible for some energy-saving home improvements, such as help with the cost of insulation, boiler repairs or replacements, and heating upgrades. For more information on these schemes, visit the Energy Company Obligation, the Great British Insulation Scheme and the Home Upgrade Grant.
2. Check if you’re eligible for extra benefits
Did you know that you could be entitled to extra benefits? Use our confidential and free benefits calculator to make sure that you’re not missing out on valuable financial support. Extra financial help like the Warm Home Discount and Cold Weather Payment can also go a long way over the colder months.
3. Check if you’re eligible for free grants
To help with rising energy costs, it’s worth checking whether you’re eligible for grants that don’t need to be paid back. Use the Turn2us Grants Search to find money that you’re missing out on.
4. Get support if you’re struggling to pay your energy bills
Did you know that if you’re struggling to pay for rising energy bills, there are lots of ways to get help, such as learning how to contact your energy company directly. We’ve compiled more helpful tips in our easy-to-understand guide, struggling to pay energy bills? 7 ways to get support.
