Household Energy Price Cap Announcement Expected 25th August 2023 – What Should we Expect?
Household energy bills are predicted to fall by £214.00 for the average household from 1st October 2023, according to the latest estimates from Cornwall Insight.
The announcement, expected on 25th August 2023, is eagerly being awaited by the vast majority of households in the UK that are currently on the Cap given the current cost of wholesale energy and no suppliers offering a cheaper rate to switch to.
The definition of the price cap is the highest allowable price (per unit of electricity and gas) that a supplier can charge household customers.
The projected saving on £214.00 based on an average household and will vary significantly based on the amount of energy used.
Currently, the Cornwall Insight projects the price cap to dip from the current level of £2,074.00 to £1,860.00 for typical households in October 2023, followed by a rise to approximately £1,960.00 in January 2024.
How does this compare to pre-Russia/Ukraine Conflict?
The pre-conflict level in October 2021 was £1,277.00 for a typical household so the new forecast price cap level of £1,860.00 is still almost 32% higher.
Is my business energy price affected by changes to the household price cap?
No. Business electricity and business gas is not affected by any changes to the household energy price cap.
Business energy prices change all of the time and will move up and down based on the current level of wholesale energy.
For this reason, if it important to track the wholesale price of energy.
Track prices before you make a decision on your next contract
The question everyone is asking at the moment is will be prices ease more in the short term. The answer is no one really knows.
We expect current period of stability to remain for the comings weeks but we don’t expect prices to drop much lower than the current level (if at all) given all of the supply issues we face as a country.
All of these factors currently have a massive bearing on the wholesale price level, especially when demand picks up as we approach the colder autumn and winter months, which are sadly just around the corner.
What happens if my contract expires in the next 3 – 6 months?
We would strongly advise taking advantage the current level of price stability.
If you still want to stick, we would advise keeping track on the market on a weekly basis. You can do this by checking this page page which is updated every Monday.