The new October 2023 energy price cap is now in effect as of October 1st. The price cap is updated every 3 months, so the current tariff will run until December 31st.
Households on standard variable tariffs will now be billed based on the new unit rates and standing charges. Customers on fixed-rate energy tariffs are not affected. Their energy prices are guaranteed to stay the same for the duration of their contract.
Want to check how much you’ll be paying? We’ve updated our utility bill calculator with the latest unit rates.
What is the new October 2023 energy price cap?
The energy price cap is a limit on how much energy companies can charge their customers who are on a variable tariff.
The price cap is adjusted every 3 months based on the wholesale price of energy, among other factors.
While the price cap is usually expressed as an annual total, it’s actually a limit on the unit rates and standing costs your supplier can charge you. The annual total is then the bill that a typical 3-4 occupant household would pay under these rates.
An average household’s annual energy bill under the new October 2023 energy price cap will be £1,834. You can see the new average unit rates in the table below.
|
|
Unit Rate |
Standing Charge |
|
Electricity |
27.35p per kWh |
53.37p per day |
|
Gas |
6.89p per kWh |
29.62p per day |
Rates and standing charges are averages, which vary by region. Based on payment by direct debit and including VAT at 5%. If you pay on receipt of the bill your charges will usually be 6-8% higher.
Average household usage has changed
The estimated annual energy bills for a household have dropped with this tariff, but that’s not only because of the cost of energy.
Ofgem have reduced the amount of energy usage that they consider ‘average’, based on the fact that households are using less energy overall.
Under the old calculation, the new energy price cap would be £1,923.
What will my bills be under the October 2023 energy price cap?
Your own energy bills will still be based on the amount of gas and electricity you use. To calculate your new energy bills, just use our simple utilities calculator.
How much will my bills be? Find out with our Utility Bill Calculator ›
