Ofgem has today (25 August) announced that the Q4 (1 October – 31 December) energy price cap will be set at £1,923 – £785 more than the April 2021 cap.
Set at an annual level, the cap represents the average cost of energy for a dual fuel household paying by direct debit on the current typical domestic consumption values (TDCV) rate, which the energy regulator recently decreased.
The new cap represents a £151 drop from the current cap and is the lowest level since October 2021, reflecting a fall in wholesale energy prices and market stabilisation.
| Direct Debit | Prepayment | Standard Credit | Economy 7 (electricity only Direct Debit) | |
| July – Sept 2023 cap | £2,074 | £2,077 | £2,211 | £1,400 |
| Oct – Dec 2023 cap |
£1,923 | £1,949 | £2,052 | £1,298 |
Data: Ofgem.
In order to support domestic energy customers, Ofgem stated that it expects energy regulators to continue improving customer service and ensure support is “accessible, responsive and understanding, including giving time to make pay arrangements and directing customers to further support and advice.”
The energy regulator also noted that it was seeing emerging competitive fixed energy price deals hinting at a slow return to a pre-crisis market.
Alongside the price cap, Ofgem also published a number of decisions including:
- Final Decision to raise the Earnings Before Interest and Tax (EBIT) allowance by £10 per customer per year.
- Remove the temporary Renewable Obligation (RO) ringfencing allowance (worth £8 per customer) which will be covered by the additional EBIT costs.
Read more: Current+
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