After the nation faced rising fuel prices that skyrocketed after the invasion of Ukraine, the cost of energy has begun to fall back in line with mid-2022 levels.

To reflect this positive change, Ofgem recently announced a new lower price cap of £1690 – £238 less than it was between January and March this year. 

But what does this mean for you? Well, the price cap is the ‘maximum amount energy suppliers can charge you for each unit of energy and standing charge if you’re on a standard variable tariff’ (Ofgem).

However, this is based on the average household (loosely defined as a two- to three-bedroom home with two or three residents), so how much you’ll pay will depend on your property’s size and energy usage. 

The price cap change won’t affect you if you’re on a fixed tariff. Conversely, if you pay a variable rate that fluctuates, the price cap will control how much your provider can charge per unit of energy. 

Based on the average rate paid by direct debit consumers, Ofgem’s data shows that gas suppliers now charge 1p less per kilowatt (Apr-Jun 2024) than from October to December last year, while electricity rates have fallen by 2p per kilowatt.