Things are changing.
In August 2023, Ofgem announced that the Energy Price Cap (EPC) would decrease from £2,074 to £1,834 from 1 October 2023. So, now could be a good time to review your energy tariff to see if you could save money on your bills.
What is the Energy Price Cap?
The EPC sets the maximum price energy suppliers can charge households per unit of energy on a standard, or default, tariff in normal circumstances. It’s designed to protect consumers, like you, from being overcharged and is set every quarter by Ofgem – the organisation that regulates energy suppliers.
How does it work?
The level of the energy price cap is based on typical household energy use. For example, the calculations for a 2-to-3 person household are based on a direct debit customer using 12,000 kWh(kilowatt hours) of gas and 2,900 kWh of electricity a year.
You can read more about how the price cap is calculated on the Ofgem website.
It’s worth noting most households aren’t typical and the price cap does not limit your total bill. The way you pay for your energy, where you live, your meter type and your consumption will affect your bills.
How to avoid paying more for energy after the price cap change.
This is the first time since April 2022 that the price cap for a dual fuel energy bill is below £2,000. So, it’s a good time to shop around for the best deal available.
You could save money by moving to a different provider or switching to a cheaper fixed-rate tariff. Fixed-rate tariffs offer a set price for energy over a fixed period, which means that you can avoid any potential price increases – and you know what you’ll be paying each month.
To help you prepare for the change, it’s worth checking out Credit Karma’s energy comparison tool so we can tell you what alternate energy deals are available. You can find out what you could save on your energy in less than one minute.