Nov 29, 2023

What does the rising energy price cap mean for you?

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(Information correct at the time of writing – 29/11/2023)

Energy Price Cap Changes for January to March 2024

The Energy Price Cap, set by energy regulator Ofgem, limits the maximum amount energy suppliers can charge customers for each unit of energy they use. The cap is updated every three months to reflect changes in underlying energy costs and inflation.

Current Cap and Upcoming Increase

For October to December 2023, the cap is set at £1,834 for a typical household using gas and electricity and paying by direct debit. However, due to recent increases in wholesale gas prices, Ofgem has announced a 5% increase to the price cap for January to March 2024. This means the average household bill is set to rise by around £94 annually, taking the price cap back up to around the levels we saw in July to September this year.

Impact on Energy Bills

The Energy Price Cap applies to those on default energy or standard variable tariffs, including those who pay by direct debit, standard credit, prepayment meter, or who have an Economy 7 (E7) meter. Those on fixed tariffs are not affected by the price cap.

If you’re on a direct debit tariff, your bills are based on an estimate of how much energy you use. If you’re in credit, it’s worth doing a meter reading and contacting your supplier to check you’re paying the right amount.

Standing Charge Changes

The standing charge is the fixed amount you pay for having a gas and electricity connection, regardless of how much energy you use. It covers things like maintenance of the supply network, meter readings, and government and environmental schemes.

The amount you pay for the standing charge depends on your supplier, tariff, and location. The average daily standing charge for electricity is 53p a day, and 30p a day for gas.

Ofgem is currently reviewing standing charges and you can submit feedback until 19 January 2024. The feedback will help Ofgem set recommendations to be published next year, leading to a policy on standing charges.

Potential Future Cost Changes

Analysts at Cornwall Insight forecast energy costs to fall through the spring and summer of 2024, before rising again towards the end of the year. Their forecast shows prices dropping back to £1,816 from April to June 2024, and £1,793 from July to September 2024.

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Michael Tuck Lettings in Quedgeley have managed our rental property for the past 11+ years.

During this time their professionalism has never dropped. In the early days, Ian, Graham and Vikki-Lee were a huge help to a novice landlord. I’m pleased to say they are still there with a helping hand. Claire has always been the nudge I needed for the necessary insurance and safety checks. Having had some difficult times over the past couple of years I would like to say a special thank you to Lianne who has been there to help wherever she could.

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Linda Parker

I cannot recommend Michael Tuck Estate Agents enough.

They were so professional and so prompt with their communication. In particular we would like to mention Charlie for his regular updates and extremely helpful service in the sale of my mothers house. We were in a particularly long chain, and he went over and above to assist us in the communications between the buyers and sellers in order for our chain to proceed. He even contacted Solicitors and helped progress the exchange.

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Kelly Durkin

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If we were to need help selling our homes in the Gloucester ara again they would be the first phone call i’d make.

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The same applies to other staff when answering queries etc.

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I have been a customer of Michael Tuck Lettings in Abbeymead for coming up to 2 years now.

I would like to highlight Kurt and James for there forever ending support and excellent communication. Their joint efforts have filled me with confidence in the ability to keep my family safe in a home we love.

No matter the complexity or need they are always on hand to support and come to some form of reasonable resolution.

For this reason I would recommend Michael Tuck to all my family and friends and will hopefully continue to stay a customer of Michaels Tucks until I purchase my own home. Thank you

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Jay Preece

Miles and the team have been brilliant from start to finish during the sale of our house.

Miles especially went above and beyond with sales chasing when I think most other people would have probably given up! Really happy with the service.

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I was recommended Michael Tuck Estate Agents in Abbeymead by a friend, thank you friend!

I would like to say a big thank you and well done to the team who are very friendly, helpful and have taken the strain out of what was a fairly long house sale.

Special thanks go to Chloe and Tony for their positivity and Chloe thank you for your good humour which lifted me during the long process!

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Jane West

Michael Tuck Lettings in Abbeymead have been a fantastic letting agents looking after our house for the past 17 years.

We have recently sold the house with the sales department.  Kurt has looked after us incredibly well during the 17 years of lettings and Tony, Andy and Chloe have made the selling very easy. Thank you

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I have recently bought and sold through the Gloucester branches and cannot praise Miles and the team highly enough.

In what has been a very testing time for the industry, Miles and all the staff have worked tirelessly in my purchase and even more so my sale.

Thoroughly recommend Tucks every time. Special thanks to Otis. Thank you guys it’s been an absolute pleasure.

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