Ofgem has today confirmed the price cap rates from 1 October to 31 December 2023 as follows.
Electricity
- Unit rate: 27.35p per kWh
- Standing charge: 53.37p per day
Gas
- Unit rate: 6.89p per kWh
- Standing charge: 29.62p per day
Annual energy bills for a typical dual-fuel household paying by direct debit will be around £1,834*. That’s a reduction of around £151 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 to the Ofgem October price cap, Mike Thornton, our chief executive, said:
“Energy prices are still high, and we may see increases again this winter, so the message for government hasn’t changed. Addressing the root causes, not least our over-reliance on gas, to permanently lower energy prices is more important than ever.
“A key priority must be to support individuals to use less energy in their homes and buildings to start with. The onus isn’t on households, it’s on government to shift the emphasis towards reducing energy demand, how much energy people are using, and when they are using it.
“As we head into winter, the cost of heating our homes comes back into focus but investing in insulation and other forms of energy efficiency remains out of reach for many. A wrap around national retrofit programme for households, underpinned by financial incentives and personalised advice, would reduce our demand for gas and bring bills down in both the short and long term.
“Recent evidence also shows that billions in financial savings could be realised if people used less energy at peak times. To make this happen, people need the right information and tools to empower them to manage their energy habits.
“We must not forget that the energy crisis and the climate emergency are inextricably linked, and the solutions needed from government go hand in hand. It’s not about the short-term mechanisms, it’s about making long term commitments to achieve an affordable, renewable, secure energy future for all.”
*This figure is based on Typical Domestic Consumption Values (TDCVs). These values are used to calculate a household’s average annual gas and electricity usage. In this case, it’s based on a two/three bed house with two/three people using 12,000 kWh of gas and 2,900 kWh of electricity a year.