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Understanding the April 2024 Price Cap Change
As Ofgem's energy price cap adjustment arrives, households across the UK are preparing to reassess their energy expenses. The shift promises to lower Britain’s energy bills to their lowest levels in over two years, offering welcome respite to consumers grappling with the cost of living crisis.
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Understanding the Price Cap
Ofgem’s energy price cap is a regulatory safeguard, limiting the maximum amount electricity and gas suppliers can charge households on variable tariffs. It's important to clarify that the price cap isn't a fixed rate or the maximum annual energy bill. Instead, it provides an estimate based on typical energy consumption patterns, offering bill payers a benchmark to gauge their energy expenses.
April 2024 Changes
With the adjustment, households can anticipate decreased energy bills. Ofgem's announcement forecasts an average reduction of £238 for dual-fuel households, translating to an annual bill of around £1,690. This trajectory signals a promising shift for bill payers, alleviating some of the financial burden associated with domestic energy.
Fluctuations in the energy price cap are typically tied to wholesale energy prices, which represent the costs incurred by energy providers. In recent months, the wholesale market has been steadily declining.
Opportunities for Further Savings
While the energy price cap sets a benchmark, consumers can explore other avenues to potentially save further on their energy bills. Some energy providers offer variable and fixed tariffs below the current price cap. A handful of suppliers also support customers facing financial hardship through grants and other initiatives.
As circumstances change, bill payers must adopt proactive measures to optimise their energy usage and minimise expenses. Simple steps such as implementing energy-efficient practices, installing insulation, and regularly reviewing tariffs can contribute to long-term savings.
How Can I Save Money on Energy Bills?
With uncertainty over the current state of the energy market, consumers are looking for ways to save money on their energy more than ever. At UKPower, we can help you compare gas and electricity suppliers to find the cheapest energy prices, switch to a better deal and cut the cost of your energy bills.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.