Gas & Electric Prices: Expert advice on lowering your energy costs this winter
- 7 months ago
On October 1st, Ofgem lowered the price cap for households in England, Wales, and Scotland to £1,834 annually for a standard dual-fuel energy bill, down from £2,074.
A significant part of this reduction arises from Ofgem's new method of calculating the average household's annual gas and electricity consumption. Under the previous approach, the cap would have only dropped by 7%, resulting in an annual cost of £1,923. However, for those using prepay meters or opting for cash or cheque payments, the figures are slightly higher at £1,949 and £2,052, respectively.
The new cap of £1,834 per year, effective from October to December, is based on Ofgem's revised calculations, assuming households are now using 7% less electricity and 4% less gas due to the prevailing cost of living challenges. While last month the regulator initially announced a headline figure of £1,923 per year for comparison, going forward, only the new system will be used.
A significant part of this reduction arises from Ofgem's new method of calculating the average household's annual gas and electricity consumption. Under the previous approach, the cap would have only dropped by 7%, resulting in an annual cost of £1,923. However, for those using prepay meters or opting for cash or cheque payments, the figures are slightly higher at £1,949 and £2,052, respectively.
The new cap of £1,834 per year, effective from October to December, is based on Ofgem's revised calculations, assuming households are now using 7% less electricity and 4% less gas due to the prevailing cost of living challenges. While last month the regulator initially announced a headline figure of £1,923 per year for comparison, going forward, only the new system will be used.