Understanding the energy price cap rise
As a trusted home services provider, it's our job to keep you updated and informed about the latest developments in the energy industry. You may have heard about the upcoming energy price cap rise in January 2024 and we understand that this may be causing some concern.
Our experts at Go Assist are here to reassure you by explaining what it means for households in the UK, as well as offer valuable energy-saving tips to help you navigate these changes effectively, ensuring your home runs efficiently.
What is the energy price cap?
The energy price cap is a regulatory measure put in place to limit the price of a single unit of energy for customers on variable energy tariffs. Ofgem's price cap has been effective since July 1st, 2019, replacing the government's Energy Price Guarantee (EPG) as the more cost-effective option.
It's essential to clarify that the price cap is not a limit on your total energy bill. Instead, it restricts the price per unit (or kWh) that energy companies can charge. Your total bill depends on how much electricity and gas you consume.
According to Which, typical energy bills between October and December 2023 are around £1,834 per year (£153 per month). However, in January 2024, they are expected to rise to approximately £1,928 per year (£161 per month) due to a 5% increase in the price cap.
What are the new energy prices as of January 2024?
From January 1st, 2024, the energy price cap will result in an average monthly bill of £161 for the typical user, reflecting an increase of around £2.83 per month.
For direct debit customers in England, Scotland, and Wales, the new unit rates will be approximately:
Electricity: 28.62p per kWh with a standing charge of 53.35p per day
Gas: 7.42p per kWh with a standing charge of 29.60p per day
For prepayment meter users, the rates will be:
Electricity: 25.63p per kWh with a standing charge of 52.87p per day
Gas: 6.35p per kWh with a standing charge of 32.58p per day
It's important to note that the total cost, including the unit rate and standing charge, cannot exceed the price cap.
Energy-saving tips
To help you offset the impact of the energy price cap increase on your household, our experts have shared some of their top energy-saving tips:
Boiler servicing
You may be wondering how is spending money on a boiler service going to help me save money? Having your boiler serviced will improve its efficiency and reduce energy wastage which in turn, helps you save money. To book a boiler service call us on 0333 733 1234
Boiler repair
If your boiler is not working as it should, we recommend getting any issues fixed promptly. This is because ignoring boiler problems can lead to increased energy consumption and higher bills. If you need a boiler repair, don't hesitate to book online so that we can get one of our engineers out to you ASAP!
Appliance repairs
If some of your appliances are working inefficiently it can lead to wasting excess energy, which can increase your energy costs over time. To help keep costs low get your appliances repaired and save time and money.
Insulate your home
Proper insulation helps to reduce heat loss, which ensures your home stays warm without excessive energy consumption. We recommend insulating walls, roofs, and floors to maximise energy efficiency.
Switch off TV, lights and appliances
Make it a habit to switch off lights as well as TV and appliances off at the wall when not in use. This simple step can lead to significant energy savings. According to the Energy Saving Trust, you can save around £35 a year by turning off your appliances and up to £15 a year by switching off lights.
For more valuable energy-saving tips read our blog.
At Go Assist, your peace of mind is our priority, which is why we're dedicated to helping you navigate these changes and where we can, minimise the impact on your household. Stay well-informed, prioritise efficiency, and remember you can always rely on us for expert appliance, boiler and electrical repairs!
