The price cap will drop by 12.3% from today (April 1) meaning the typical dual fuel household paying by direct debit can expect their annual bill to drop from £1,928 a year to £1,690
Millions of households will see a huge drop in their energy bills from today, as the Ofgem price cap is adjusted once again.
The Ofgem price cap changes every three months and had been falling in 2023. It went up in January though, with the average home paying £1,928 a year for a typical dual-fuel household paying by direct debit – an average increase of 5% per household.
But the price cap has seen a dramatic drop from today. The price cap has fallen by around 12% from this April. It means the typical dual fuel household paying by direct debit can expect their annual bill to drop from £1,928 a year to £1,690, a fall of £238.
The unit price for electricity for direct debit customers is falling by 14%, while gas is going down by 19%. Standing charges are increasing though for direct debit users, with electricity going up by 13% a day and gas by 6% a day. For someone paying by direct debit, for every £100 you pay each month, this will be roughly reduced to £87.70. You can see an estimate as to how much your bill will increase from April using our energy bills calculator:
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Our energy calculator only applies to dual fuel direct debit customers. It won’t work if you have a prepayment meter or you pay on receipt of bills. These methods of paying have different unit rates and standing charges.
The price cap sets a limit on how much gas and electricity you use, as well as the maximum daily standing charge. It does not put an actual cap on how much you can pay for energy.
The main price cap figure illustrates what someone with typical energy consumption can expect to pay each year. Ofgem assumes the average household consumes 2,700 kwh of electricity and 11,500 kWh of gas over 12 months.
There are regional variations as well, in terms of unit rates and standing charges, which will also effect how much you pay. The headline number is used to give an average across England, Scotland and Wales.
