That time again… the time where the Energy Price Cap is renewed, and on this occasion we’re set for an increase. The October 2024 Energy Price Cap is set to increase by a whopping 10% compared to July’s cap. This means that the average UK household will see there energy bills rise by £149.00.
What is the Energy Price Cap?
The energy price cap is a set limit on the cost of each unit of gas and electricity used by consumers. Additionally, it sets a maximum standing charge amount. It applies to the standard or default tariffs charged by energy companies. – Smart Energy GB
Ofgem regulates the Energy Price Cap and announced on August 23rd 2024 that the October Cap would rise by 10%.
Is it actually a cap?
In short, no. The Energy Price Cap only limits the pence per unit charge that Utility Providers can set. The price you pay will simply be based on how much energy you use. October is the month we all dread after Summer, as the clocks go back and daylight hours reduce day by day. With this, the temperature also drops, meaning heating systems are turned on. Your energy bills are likely to be much higher in the Winter months in comparison to the Summer…
What can I do to pay less?
You can’t necessarily do anything to ‘pay less’ for the energy you use from the National Grid. However, you can limit the amount of energy you are buying from Utility Companies and at what rate you’re purchasing said energy.
How? Renewables. Solar and Battery Storage are a great way to reduce your bills by generating, storing and using your own clean, green energy.
Variable Electricity Rates
Almost all Utility Providers now offer a variable rate for electricity. Formally known as the Economy 7 Tariff, variable rates give you a standard rate during the daytime, (typically between 07:00 and 23:00) and an off-peak rate (usually falling between the hours of 00:00 and 06:00.) By switching to a variable rate, you can charge up an energy storage system during the considerably cheaper window, using the stored energy during the daytime. Less energy purchased from the grid at peak times means less money spent on electricity.