Ofgem price cap takes effect

Experts have cautioned about the ongoing struggle of managing high costs during the approaching winter months

The revised energy price cap has officially come into force in the UK.

Under the new price cap, the typical household using direct debit for gas and electricity payments will face an annual charge of £1,923 for the period from October to December.

This represents a reduction from the previous cap, which stood at £2,074 for the three months leading up to the end of September.

Despite the upcoming drop in energy prices, bills remain significantly higher than pre-crisis levels.

Energy Secretary Claire Coutinho has welcomed the implementation of the new price cap, hailing it as good news for families and a significant step in fulfilling the government’s commitment to tackle inflation.

Ms Coutinho said: “We will continue to support the most vulnerable through the winter – on top of the £40 billion we provided last year to cover around half a typical household’s energy bill.

“We are committed to help families and businesses who are facing cost of living challenges, as we strengthen our energy security to deliver cheaper, cleaner homegrown power.”

Emily Seymour, Which? Energy Editor, said: “Fixed deals are starting to return to the market but we wouldn’t recommend fixing anything higher than the unit rates in your current deal or for longer than a year.

“If you are offered a deal, then it’s really important to check the tariff’s exit fees in case you want to leave that deal early if the price cap comes down.”

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast