UK homes expected to save £251 off bills with new price cap
UK households are looking at a minor decrease off their bills from 1st October 2023 but costs are set to remain much higher than at pre-crisis levels.
According to Cornwall Insight, forecasts for the last quarter of 2023, for a typical duel fuel customer household, costs are set to be £1,823.00 per year (using the Typical Domestic Consumption Values) compared to the current level of £2,074.00 set on 1st July.
This warrants an estimated annual saving of £251.00, with 7% being saved on the price of electricity and 4% on gas.
Ofgem have also announced with effect from the 1st October that they will revise the consumption estimates on which the average costs is being calculated.
The above figures are estimates only and based on what Cornwall Insight are projecting. The official announcement from Ofgem is expected on Friday 25th August.
It will be interesting to see what happens from 1st October. Will more competition start to return to household switching?
How does this compare with business energy costs?
Businesses have been seeing a much lower rate for business electricity and business gas for the last 6 months as the wholesale price of energy has being dropping. Household energy costs are much slower to react as suppliers are not really quoting under the current price cap level.
Businesses are not protected by a price cap, so switching or negotiating on renewal is the only way for business energy customers 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.