Ofgem confirm energy price cap will fall in April 2024

Energy regulator Ofgem announced on 23 February 2024 a significant reduction of the energy price cap for the second quarter of 2024.

The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April to 30 June 2024.

For an average household paying by direct debit for dual fuel this equates to £1,690, a drop of £238 over the course of a year – saving around £20 a month.

This will see energy prices reach their lowest level since Russia’s invasion of the Ukraine in February 2022 caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers.

However, despite reaching this welcome milestone, Ofgem recognises that the cost of living remains high and many customers continue to struggle with their bills as standing charges rise and energy debt reaches a record figure of £3.1 billion.

Jonathan Brearley, CEO of Ofgem, said “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers.”

This is welcome news for households in the UK as they will now be seeing prices that businesses have been switching to for the last 3-4 months.

If you are a business customer you can compare the market online here and switch to the cheapest rate available for your meter.