The cap is not the maximum a household can pay, it merely limits how much a supplier can charge for each unit of energy as well as the maximum daily standing charge (flat daily fees charged for a gas and electricity connection regardless of use). Your own bill could be higher or lower because it is based on your actual usage rather than average consumption. A person may elect to be treated as a “professional client” in respect of potential investments. This means the person will lose certain protections that are afforded to retail clients, as set out in the Statement For Elective Professional Client. The main factor that decides the Ofgem price cap is the cost of wholesale energy. The assessment period for wholesale energy prices for the new price cap was from August 18, 2023, to November 15, 2023. The Ofgem price cap limits what you pay for each unit of gas and electricity that you use, plus it sets a maximum daily standing charge. This means your total annual bill depends on how much energy you actually use - so it could be more or less than the price cap figure.

Ofgem announced its price cap for January today - but what is it and how exactly does it affect your energy bills?Energy bills are at the lowest level since April 2022 but wholesale prices are still much higher than they once were. Pressure has mounted once again on wholesale prices due to the conflict between Israel and the Governing body of the Palestinian territory of Gaza, Hamas. This means household energy bills have the potential to rise again. How has the Ofgem price cap changed over time? It’s a timely reminder that inflation might be falling but some prices are still rising,” said Danni Hewson, the head of financial analysis at the investment platform AJ Bell. “For households still trying to work out what yesterday’s autumn statement means for their finances, the news their energy bills are going up once again from January will be a bitter pill to swallow. Martin Lewis verdict on National Insurance tax cut in Autumn Statement What is the Ofgem price cap?

To confuse matters, Ofgem recently changed how much energy it assumes an average household uses, due to people using less gas and electricity to save money. Ofgem assumes the average household consumes 2,700 kwh of electricity and 11,500 kWh of gas over 12 months. Ofgem reduced the amount it assumes the typical household uses in electricity from 2,900 kilowatt hour (kWh) to 2,700 kwh, and from 12,000 kWh to 11,500 kWh for gas. The below figures are based on the new typical usage figures. However, this was given short shrift by consumer champion Martin Lewis who tweeted that the assertion was “pushing it a bit”, adding: “There are no standalone cheap fixes that are worth moving to that don’t require you to switch other utilities too.”This leaves the majority of households facing the coldest months of the year with much higher energy costs than before the pandemic, without government help and limited scope to switch to a cheaper deal. Becoming eligible to view our material in respect of potential investments is a two-step process. Step One: