What will the energy cap changes mean for my bills?
The energy cap fixes the maximum amount which customers on standard variable tariffs can be charged for each unit of gas and electricity used. It
The energy cap fixes the maximum amount which customers on standard variable tariffs can be charged for each unit of gas and electricity used. It covers around 33 million households in England, Wales and Scotland and is set by the regulator Ofgem every three months, external. Of the 33 million around 19 million pay by direct debit around 7 million pay by standard credit (they pay when they get a bill) around 6 million have prepayment meters The typical annual usage figure applies to the first category: dual-fuel households on a standard variable tariff which pay by direct debit.
Between 1 July and 30 September, their gas prices will be capped at 7.33 pence per kilowatt hour (kWh), up from 5.74p. Electricity prices will be capped at 26.11p per kWh, up from 24.67p. It means that a typical household will pay £1,862, up from £1,641 between 1 April and 30 June. But customers' actual bills depend on the amount of energy used and how they pay for it.
The typical annual bill for customers who pay by standard credit will be £2,005, up 13% from £1,772. The typical annual bill for prepayment customers
will be £1,812, up 13% from £1,597. Ofgem regulates the energy market in England, Scotland and Wales. Northern Ireland has a separate system.
The BriefWire