Energy price cap comes into force

Staff
By Staff
2 Min Read

The energy price cap will be reduced to £1568 per year starting 1st July.

This change will be in effect until 30th September.

The new cap represents a £122 decrease from the previous cap of £1,690 set from April to June 2024.

Emily Seymour, Which? Energy Editor, said: “With the price cap predicted to rise again in October, many consumers will also be wondering whether to fix their energy deal.

“There’s no ‘one size fits all’ approach but the first step is to compare your monthly payments on the price cap to any fixed deals to see what the best option is for you.

“As a rule of thumb, if you want to fix, we would recommend looking for deals as close to the July price cap as possible, not longer than 12 months and without significant exit fees.”

The Energy and Climate Intelligence Unit notes that the reduction provides temporary relief but is minimal due to lower energy usage in the summer months.

Prices remain higher than pre-crisis levels and a further increase is anticipated in October.

Households could see annual energy bills rise to £1,724, significantly above pre-crisis averages.

The ongoing gas crisis has led to substantial costs for households, with projections indicating that by September 2025, households will have paid nearly £2,600 more due to elevated energy prices.

Copyright © 2024 Energy Live News LtdELN

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