New price cap for households confirmed by Ofgem at £1923 for October to December 2023
As reported earlier in the week UK households bills for an average dual fuel customer will drop below £2000 for the first time since April 2022.
As wholesale energy prices are now lower, the regulator Ofgem are now in the position where they can reduce the price we all pay for our household energy bills. This will be an average decrease of around £151 for the year.
It will cover the period from 01/10/2023 through to 31/12/2023. Although this is relatively good news in the short term, the price cap is expected to go up given that the wholesale market has been increasing in recent weeks on the back gas supply outages from Norway and the threat of strikes from key LNG depot’s in Australia.
Although we were also expecting the price cap to be reduced further as experts Cornwall Insight forecasted that the cap would fall to £1,823 per year (using the Typical Domestic Consumption Values), an estimated annual saving of £251.
How does this compare with the price you pay as a business?
Businesses retail prices follow the wholesale market more keenly and we have been seeing below new price cap levels for business electricity and business gas for the last 3-6 months to reflect movement in wholesale prices.
Businesses are not protected by a price cap, so switching or negotiating the best possible price on renewal is the only way for a business to save money on their bills.
There is no default price cap to move onto for a business when their fixed term contract ends, only the suppliers really high out of contract rates which are 30-40% more expensive than a new contract rate.
Track the wholesale levels of electricity and gas
Business energy prices change every day based on the movement in the wholesale price of electricity and gas. As a business, it is really important that you track this to make sure you make a confident decision on your next energy contract.
You can track the latest price trends by clicking here.
Compare the market
If you are out of contract or approaching the end of a fixed term contract, it is really important that you check the current retail rate of business electricity and business gas.
You can do this completely online. All you need is your business postcode to see the latest business electricity and business gas prices for your meter.