Ofgem has confirmed that the price cap on the unit costs of gas and electricity will increase in England, Scotland and Wales from 1 January to 31 March 2024. Here are the new rates:
Electricity
- Unit rate: 28.62p per kWh
- Standing charge: 53.35p per day
Gas
- Unit rate: 7.42p per kWh
- Standing charge: 29.60p per day
Annual energy bills for a typical dual-fuel household paying by direct debit will be around £1,928. That’s an increase of around £94 a year, based on the current price cap unit rates.
The price cap sets the maximum amount that suppliers can charge for units of gas and electricity. The exact amount a household spends on energy will depend on how many units they use.
Responding the update, Stew Horne, our head of policy, said: “It’ll be difficult for many to know that energy prices are set to rise once again from January 1.
“Despite easing slightly in 2023, the UK is still in the midst of an acute cost of energy crisis, as it has been for the past two years.
“Our over-reliance on volatile international fossil fuel markets underpins these high prices as well as the escalating climate emergency.
“In yesterday’s Autumn statement, we had hoped to see the UK Government commit to the large-scale energy efficiency and demand reduction solutions that we know will reduce energy bills, improve energy security and lower carbon emissions in the short and long-term.
“However, with no further commitment to support households to manage high energy bills, or improve the warmth and comfort of their homes, we know this winter and the months ahead will be challenging.
“Time is running out for this government to take much needed and long called for decisive action that will both bring energy bills down and help realise the UK’s net zero future.”