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Bills to come down with new Energy Price Cap

The Energy Price Cap will fall from 1 October

The amount we’ll pay for energy is to drop this autumn as the Energy Price Cap falls.

A typical home will pay around £1,923 a year for gas and electricity when the new lower price cap comes in on 1 October. That’s down from the price cap over summer, which was £2,074.

If we have a prepayment meter it’s a bit higher at £1,949.

But for those of us who pay by cash, cheque or bank transfer every three months will pay more.

And if we’re in Northern Ireland, the price cap doesn’t apply. Bills tend to be slightly lower though.

Although we’ll pay less for energy over the colder months, the cap is predicted to rise again in January. Keep an eye on quidsinmagazine.com/news for more on this when it’s announced.

Not a cap on bills…

Remember though that the price cap is NOT a limit on bills. It’s a cap on the maximum price we can pay per unit of energy. The more we use, the more we’ll pay. So it’s always a good idea to save energy where we can.

The regulator Ofgem amends the price cap every three months to reflect the wholesale prices that suppliers pay for energy.

This winter, the government won’t be paying households the £600 energy support cash that we all received last year to help with bills. But if we’re on certain benefits we’ll be in line for a cost-of-living cash boost, which we don’t have to pay back.

The price cap is amended every three months to reflect the wholesale prices that suppliers pay for energy.

One more thing…

The government’s Energy Price Guarantee (the £2,500 figure) will stay in place until March 2024.

This means that if Ofgem’s Price Cap were to go up again, we’d still be protected by the Price Guarantee.

Experts have predicted that energy prices are likely to rise slightly at the start of 2024.

Keep an eye on the Quids in! website for updates and energy-saving tips.

Image: RDNE Stock / Pexels

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