New energy price cap level starts today
News
Publication date
From today 1 October 2023, the maximum amount energy suppliers can charge people on default tariffs between 1 October to 31 December 2023 is £1,834 per year for a typical household who pay by Direct Debit.
The amount you pay will depend on actual household usage and where you live as well as meter and payment type.
Energy price cap rates 1 October to 31 December 2023
Electricity rates
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay no more than 27 pence per kWh and 53 pence per day for the daily standing charge. 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 no more than 7 pence per kWh and 30 pence per day for the daily standing charge. This is based on the average across England, Scotland and Wales and includes VAT.
View and compare the price cap levels for 1 October to 31 December 2023 with 1 July to 30 September 2023.
We review and set a level on how much an energy supplier can charge for each unit of energy every three months. The levels for January to March 2024 will be published end of November.
Calculating the energy price cap
The energy price cap is calculated using Typical Domestic Consumption Values (TDCVs).
The typical household figure is based on the average gas and electricity used by households across England, Scotland and Wales.
We estimate that the medium usage figure is about the same as the amount of energy used by a household with 2-to-3-bedrooms and where 2 to 3 people live. These calculations can help understand the average amount of energy a household may use based on whether they are a low, medium or high energy usage household. They can be used to understand how much your energy bill could be based on your household average energy usage. You can use them to compare energy prices or get an estimated quote on energy tariffs and price comparison websites.
The changes to the energy price cap for the period 1 October to 31 December 2023 was announced 25 August 2023. We have noticed that households are using less energy and have updated the Typical Domestic Consumption Values to reflect this. This means that the energy price cap unit rates announced on 25 August will not change, but from 1 October our estimate of the annual amount a typical household who pay by Direct Debit for their energy will be lower. Read about the review and the recent change to how we calculate Typical Domestic Consumption Values.
View the typical annual usage figures for gas, electricity single rate and multi-rate, such as economy 7 and read how average gas and electricity usage is calculated.