Customers at major energy firms including British Gas, E.ON, EDF and Octopus Energy have today been handed a boost worth £360.
Firms have been notified by Ofgem that the price cap has been set for July 1, 2024, meaning a 7 percent reduction must be passed on to the average household bill from that date.
This only applies to those on the variable tariff, but due to the soaring costs of energy in the past two years, 90 percent of households are still on a variable tariff right now so will reap the benefit from July.
Ofgem set the official unit rates for July 1 to September 30 2024 as it announced: “Between 1 July to 30 September 2024 the energy price cap is set at £1,568 per year for a typical household who use electricity and gas and pay by Direct Debit.
“This is £122 lower than the cap set between 1 April to 30 June 2024 (£1,690).”
The actual figures for energy use will set electricity at 22.36p per unit and 5.48p per unit for gas.
Standing charges will be set at 60.10p per day for electricity and 31.41p a day for gas.
The 7 percent cut is a £122 reduction. Combined with the previous £238 reduction in April means that households are £360 better off across the two price cap changes.
The downside is that there are forecasts of price rises in September, so it may be worth considering a fix if you can get a price significantly lower than the current price cap predictions because this price cap is thought to be the lowest price we’ll see for a while.
