Changes to energy price cap between 1 April to 30 June 2024
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Every three months we review and set a level on how much an energy supplier can charge for each unit of energy.
From 1 April to 30 June 2024 the price for energy a typical household who use electricity and gas and pay by Direct Debit will go down to £1,690 per year. This is £238 per year lower than the price cap set between 1 January to 31 March 2024 (£1,928).
You are covered by the energy price cap if you pay for your electricity and gas by either:
- standard credit (payment made when you get your electricity and gas bill)
- Direct Debit
- prepayment meter
- Economy 7 (E7) meter
The actual amount you pay will depend on how much energy your household uses, where you live and type of meter you have.
Energy price cap rates 1 April to 30 June 2024
Electricity rates
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 24.50 pence per kilowatt hour (kWh). The daily standing charge is 60.10 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
Gas rates
If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.04 pence per kilowatt hour (kWh). The daily standard charge is 31.43 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained page.
View and compare 1 April to 30 June 2024 and 1 January to 21 March 2024 Energy price cap standing charges and unit rates by region.
You can also get and compare all the Energy price cap (default tariff) levels.
Support for people with a prepayment meter
In the past people who pay for their energy using a prepayment meter have paid more for standing charges than people who pay by Direct Debit. This is because it costs energy suppliers more to get electricity and gas to those on a prepayment meter.
We plan to balance standing charges between prepayment and Direct Debit payment methods. This will mean that people who pay using a prepayment meter do not pay more than other payment methods. Previously the 'PPM premium' was removed by UK government support through the Energy Price Guarantee but this support will end on 1 April 2024. We have made changes to the price cap that is a lasting solution, which must be funded by energy bill payers rather than tax payers.
People with a prepayment meter will continue to be supported so that their standing charges are no more than Direct Debit standing charges. People on a prepayment meter who get their electricity and gas from the same supplier will save around £49 per year (£52 including VAT), but people who pay by Direct Debit will pay an extra £10 per year.
Covering debt costs
We are also allowing a one-off extra payment of £28 per year (£2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling. This will be added to bills of people who pay for their energy by Direct Debit or standing credit. The temporary payment is partly offset by the end of an allowance worth £11 per year that covered debt costs related to the COVID pandemic.
View and compare costs included in the Energy price cap.
Other changes to help energy customers
From 1 April 2024, we will extend for another 12 months a ban on short-term discounted tariffs intended to attract customers from other suppliers. This ban called the ‘ban on acquisition-tariffs’ has been in place since April 2022. We plan to ask for views and feedback about shortening this extension to six months.
Also, energy suppliers will have five days instead of 15 days to move you from your old energy supplier if you decide to switch to a new energy supplier. If they do not meet the five day deadline they will have to pay £30 in compensation to the customer.