Exact date energy bills set to fall for millions next month
ENERGY bills are set to fall for millions from next month.
The new energy price cap will come into effect on October 1, meaning the average household on a duel-fuel tariff will pay £151 less a year compared to now.
The cap will fall from £2,074 to £1,923, its lowest figure since March 2022.
It’s important to note the price cap isn’t a limit on what you will pay on your bills from next month.
The cap just limits the amount suppliers can charge customers for each unit of gas and electricity.
The £1,923 figure is based on what Ofgem, which sets the cap, thinks the average household will use.
You could end up spending more or less than this depending on your usage.
Ofgem said it will be cutting the price suppliers can charge for gas from 6.9p per kWh now to 6.89p from October 1.
Meanwhile, the price of electricity will fall from 30.1p per kWh to 27.35p.
The exact unit rates you will be charged will vary based on your supplier, where you live and how you pay for your gas and electricity.
Meanwhile, for the four million customers on prepayment meters the average bill will drop to £1,949 a year.
It comes as customers on these meters no longer have to pay higher rates for the energy they use.
Following the announcement of the new price cap, then energy secretary Grant Shapps said it was “encouraging” families would see their bills fall further from October.
But some charities warned the fall in prices would be offset by a rise in the daily standing charge and no cash support for households.
Millions of families received a £400 energy rebate between October 2022 and March this year but this won’t be repeated this autumn.
How can I calculate my bill?
You can work out what you will pay under the new price cap by finding out the unit rates for your gas and electricity and the standing charge for each fuel type.
Unit rates and standing charges vary depending on where you live, but you can find what yours is on the Government’s website.
The standing charge is a daily charge paid 365 days a year, even if you don’t use any gas or electricity.
Once you have these figures, you will need to note down your own annual energy usage based off a previous bill.
With these details, you can work out your gas and electricity costs separately.
Then multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type. This will give you your usage costs.
You’ll then need to multiply each standing charge by 365, for each day of the year, and add this figure to the totals for your usage.
Divide this figure by 12 and that will give you how much you will pay each month from October 1.
What other energy bill help is available?
Millions of households are in line for two cost of living payments between now and spring 2024.
The first £900 payment has been split into three parts, with the first worth £301 having already been paid.
The second and third instalments, worth £300 and £299, will be paid this autumn and in spring next year respectively.
You qualify for the payments if you receive the following benefits:
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
Meanwhile, millions of pensioners will receive a top up on their Winter Fuel Payment worth between £150-£300.
Anyone who qualifies for the Winter Fuel Payment this year is eligible for the top up.
You can get a Winter Fuel Payment for winter 2023 to 2024 if you were born before September 25, 1957.
A number of energy suppliers offer cash grants to customers struggling with their bills too, including British Gas, EDF and E.ON.
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