Here are 10 key questions answered by this article:
1. What is the new energy price cap for October to December 2024?£1,717 for Direct Debit customers.
2. How much is electricity increasing by?
From 22.36 pence to 24.50 pence per kWh.
3. How much is the gas price rising?
From 5.48 pence to 6.24 pence per kWh.
4. How will the standing charge for electricity change?
It will rise from 60.12 pence to 60.99 pence per day.
5. How will the gas standing charge change?
From 31.41 pence to 31.66 pence per day.
6. Why are energy prices increasing?
Primarily due to rising wholesale energy prices and operational costs.
7. What is the difference in costs for prepayment customers?
An increase of £147 in total.
8. How does the price change for standard credit users?
Their bills will rise by £161.
9. How will Economy 7 customers be affected?
They will see a £94 increase.
10. When will the next price cap review happen?
The next review will be in November 2024 for the January to March 2025 period.
The energy price cap for October to December 2024 shows a significant rise in both electricity and gas costs. The price per unit of electricity will increase from 22.36 pence to 24.50 pence, and the standing charge will go up slightly to 60.99 pence per day. Gas prices will also rise, with the unit cost moving from 5.48 pence to 6.24 pence per kWh, and the standing charge increasing to 31.66 pence per day. These changes are part of an overall increase in energy costs, primarily driven by higher wholesale energy prices and necessary operational expenses.
For customers paying by Direct Debit, the energy price cap for an average household will rise to £1,717, an increase of £149 compared to the previous quarter. This includes various cost increases, such as wholesale energy, which saw a jump of £123, network costs rising by £7, and VAT going up by £7. On the other hand, there were slight reductions in some areas, such as government policy costs, which dropped by £1.
The changes in prices will vary depending on the payment method. Prepayment meter customers will face a total increase of £147, while those using standard credit will see an even larger increase of £161. For those on Economy 7 tariffs, which provide different rates for day and night usage, the total cost will rise by £94.
These quarterly updates reflect how the price cap is designed to keep energy prices fair while covering necessary supplier costs. However, with rising prices, this is likely to place additional pressure on household budgets during the colder winter months. Future updates to the cap will continue to be influenced by market conditions, with the next review coming by November for the January to March 2025 period.
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