Ofgem has announced that from April 2024 the energy price cap is going to be reduced to £1,690 per year for a typical household. This will be £238 lower than the cap they set in January 2024 which was, £1928.

The price cap is the maximum amount energy suppliers are able to charge for each unit of energy.

Are you covered by the price cap?

You will be covered if you pay by, Direct debit, Standard credit, repayment meter and Economy 7 Meter.

The price cap covers 29 million households in England, Wales and Scotland stated by the BBC.

The price cap is based on a typical household which pays their bills by direct debit using gas and electricity. However, If you pay every three months by cash and cheque the price cap falling will not affect you and you will be charged more in April 2024.

How Long will this Price cap last?

Every three months Ofgem reviews the price cap and so in June 2024 the price cap could alter again.

Analysts at Cornwall Insight predict the price cap will see a small fall in July and then increase in October

Ofgem

This is the energy regulator for Great Britain which works to uphold energy regulations. They review the situation every three months and set price caps which energy suppliers must follow.