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Decrease in energy costs from April 1st

Energy prices will decrease by 12.3% from April 1st

Ofgem has announced a new price cap from 1 April until June 30 2024 that will on average, decrease energy bills by 12.3%.

‘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)’

How?

Bills will decrease because the unit cost of gas and the unit cost of electricity is decreasing.

For example, customers on a variable tariff who pay by direct debit will pay on average

  • 24.50 pence per kilowatt hour (kWh) for electricity and a daily standing charge of 60.10 pence per day
  • 6.04 pence per kilowatt hour (kWh) for gas and a daily standard charge of 31.43 pence per day.

The changes to the rates were explained by Martin Lewis as “the best way to think about this on average with a 12.3% cut, for every £100 you spend on energy right now, use the same in April and you’ll roughly pay £87.70.”

Martin Lewis also explained that although the daily standing charge for gas(up 6%) and electricity(up 12%) will increase, the cuts in unit rates are bigger than the increase in the standing charge. With a firm belief against standing charges, Martin Lewis continues to campaign to have them abolished.

Who will benefit from the price cap?

  • Customers are covered by the energy price cap if they pay for 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

To summarise

  • Customers will save on average 12.3% (depending on usage)
  • The unit cost of electricity will decrease
  • The unit cost for gas will decrease
  • Standing charges per day for gas and electricity will increase but this won’t outweigh the decrease in unit rates
  • Rates are predicted to decrease again in July

We encourages anyone who needs support or help understanding these changes to contact us. 

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