Tony Jordan
16 May 2024

Ofgem Price Cap – Effective 1st July 2024

Today sees the close of the ‘observation window’ for the upcoming domestic price cap period, effective 1st July 2024.

Over the last few months, whilst the prices have been ‘calculating’ the market has flattened after an early downward trend in the observation window. This has meant that the average price being calculated in recent weeks has started to creep upwards a bit.

It is expected, in line with when the network charges are updated in April and October, that no changes to the standing charges are likely to be seen (bar some very small adjustments perhaps).

With that in mind the current standing charges set for the April price cap are expected to be the same at 60p/day for electricity and 31p/day for gas – these values, as always, being for that ‘typical’ dual fuel customer who pays by direct debit living in GB Average.

You’ll recall our YouTube video series that talked about how the prices are calculated, what affects them and who that ‘typical’ customer was.

So that means we then concentrate on the unit rate charges – again for the ‘typical’ customer.

We expect these to reduce from their current rates of 6.04p/kwh for gas and 24.50p/kwh for electricity to 5.6p/kwh for gas and 22.2p/kwh for electricity.

Regional differences, as well as for different payment types etc may see you pay different numbers to those mentioned in this post, however the general summary is that we expect the standing charges to be unaffected and unit rates to decrease by around 7% compared to the April price cap values.

In terms of ‘headline rate’ – the annual value announced by Ofgem, we expect this to be around £1,580 (from £1,690 announced in April).