Ofgem Price Cap 01/04/23 - 30/06/23

1961Nick

Energy regulator Ofgem has today (Monday 27 February 2023) announced its quarterly update to the energy price cap for the period 1 April – 30 June 2023.   

From 1 April the energy price cap will be set at an annual level of £3,280 for a dual fuel household paying by direct debit based on typical consumption, a reduction of almost £1,000 from the current level, of £4,279 which reflects recent falls in wholesale energy prices. 

The £3,280 figure indicates how much consumers on their energy suppliers' basic tariff would pay if the government’s Energy Price Guarantee (EPG) were not in place.

From 1 April, the government has set the EPG at £3,000 for the typical bill – meaning that consumers will not pay the full level of the energy price cap.

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption. From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 51p  per kWh for electricity customers and a standing charge of 53p per day. The equivalent per unit level for a typical gas customer is 13p per kWh with a standing charge of 29p per day.  

https://www.ofgem.gov.uk/publications/ofgem-announces-latest-quarterly-price-cap-update

1961Nick

It looks as if the new prices will be around 90% of the Ofgem price cap after the EPG discount - 46p/kWh for electricity & 11.7p/kWh for gas.