Energy Price Cap

For the period of January to March 2024, the Ofgem price cap is set at £1,928 for a typical household per year.

The Price Cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, and sets a maximum daily standing charge (what you pay to have your home connected to the grid).

That means there's no upper limit to what you actually pay – if you use more energy, you'll pay more, use less and you'll pay less.

The price cap standing charges and unit 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

The Price Cap is set differently for those that pay by monthly direct debit, those that pay quarterly or on the receipt of a bill, and for those that prepay for their energy:

• If you pay by direct debit, from 1 January to 31 March 2024 the Price Cap is a typical £1,928 a year. This is based on Ofgem's new, lower typical use figures. 
  
  
• If you pay by cash, cheque or quarterly direct debit, the Price Cap is £2,058 a year on typical use. Ofgem says this is higher than paying by direct debit to reflect the additional costs from suppliers to bill those that don't pay by monthly direct debit.
  
  
• If you prepay for your energy, the Price Cap is £1,917 a year on typical use. Ofgem said it costs more to bill customers with prepayment meters, compared to those paying by direct debit, but the Government has committed to end the 'prepay premium' and will again provide a small discount to the Price Cap standing charges from 1 January 2024, through the EPG.

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