Ofgem has today (23 February) confirmed the 1 April to 30 June 2024 Default Energy Price Cap will be set at £1,690 for the average dual fuel household paying by direct debit, the lowest cap in two years.

Wholesale cost saw the biggest decrease of the energyq price cap cost stack, decreasing by £265 (12%) between the current January to March (Q1) cap and the April to June (Q2) cap. However, several costs were added, including a one-off payment of £28 to cover the growing issue of bad debt, which will be added onto annual energy bills for 12 months (£3 per cap).

Energy Price Cap

A new levelisation allowance of £10 was also added to the Q2 price cap, which Ofgem introduced so “that people who pay for their energy using a prepayment meter will pay the same standing charge as those who pay by direct debit.”

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