Energy Bills and the Price Cap news, page 9
- April 2024
Prepayment meter standing charges levelled with Direct Debit under the price cap
From 1 April 2024 prepayment meter standing charges fall to the level paid by direct debit customers under Ofgem's price cap, ending the long-standing prepayment premium.
REMA update includes zonal pricing as an option for further consideration
Ofgem's discussion paper on the future of the default tariff price cap sets out options for reform, including zonal wholesale pricing, and asks for responses by 10 May 2024.
Standing charges rise as unit costs fall slightly from 1 April
Electricity standing charges rise 13% and gas standing charges 6% from 1 April 2024, while unit costs fall slightly, as analysis puts energy firm profits at over £420 billion since the crisis began.
Supplier switches must complete within five working days with £30 compensation
Ofgem rules in force from 1 April 2024 require energy suppliers to complete a customer's switch within five working days, with £30 compensation payable if the deadline is missed.
Temporary debt-related costs allowance introduced in the price cap
Ofgem introduced a temporary allowance in the price cap from April 2024 letting suppliers recover debt-related costs incurred between April 2022 and March 2024 above the permanent allowances.
Third £299 cost of living payment due in spring 2024
The final £299 instalment of the £900 means-tested cost of living payment is due in spring 2024, following £301 paid in spring 2023 and £300 in autumn 2023.
- March 2024
Energy price cap levels updated for 1 April to 30 June 2024 with standing charge levelisation introduced
Ofgem has set the default tariff cap for 1 April to 30 June 2024 at £1,690 for a typical Direct Debit household, down £238, and has levelled prepayment standing charges with Direct Debit.
Market Stabilisation Charge expired
The Market Stabilisation Charge expired on 31 March 2024, removing a levy that suppliers could previously apply when a household switched away from them during the energy crisis.
Ofgem publishes discussion paper on the future of domestic price protection
Ofgem has opened a discussion on whether the default tariff price cap needs reform, seeking views by 10 May 2024 on how household price protection should work as the retail market changes.
E.ON Next electricity prepayment emergency credit increased from £5 to £10
E.ON Next has raised emergency credit on most electricity prepayment meters from £5 to £10, with the increase still being rolled out and customers told by letter or email.
Chancellor confirms end of the Energy Price Guarantee
The Chancellor has confirmed the Energy Price Guarantee will end and left tariff reform out of the Spring Budget, closing the scheme that capped household unit rates.
Covid-19 cap amendment to end in March 2024
Ofgem's temporary amendment to the energy price cap, which allowed suppliers to recover additional costs incurred during the Covid-19 pandemic, runs until March 2024, Energy UK has said.
Energy Price Guarantee and cost of living payments to end
The Energy Price Guarantee and cost of living payments end on 31 March 2024, leaving the Household Support Fund as the only extended support and no new money for energy efficiency.
Energy Price Guarantee support to expire at end of March 2024
Ofgem has confirmed that Energy Price Guarantee support ends on 31 March 2024, replaced from 1 April by a levelisation allowance that cuts prepayment standing charges and raises Direct Debit bills slightly.
Ofgem publishes Future of domestic price protection discussion paper
Ofgem has published a discussion paper on the future of domestic price protection, asking whether the default tariff price cap should be reformed as the retail energy market changes.
- February 2024
Utility Warehouse launches Fixed Saver 15 and Fixed 15 fixed energy tariffs
Utility Warehouse has launched two fixed energy tariffs priced below both the January and April 2024 price caps, with the cheaper option requiring customers to move two other services to the supplier.
£28 bad debt cost added to annual bills for 12 months
Ofgem has added £28 to annual energy bills for 12 months within the April price cap to help suppliers recover bad debt costs, as the cap falls to £1,690.
Ofgem announces April-June 2024 price cap
Ofgem has set the April to June 2024 price cap, which the Resolution Foundation says will produce the second biggest percentage fall in consumer energy prices since the cap began in 2019.
Ofgem announces price cap level for 1 April to 30 June 2024
Ofgem has set the energy price cap for 1 April to 30 June 2024 at a typical dual-fuel annual bill of £1,690, a 12 per cent fall, with prepayment meters becoming the cheapest way to pay.
Ofgem decides not to adjust energy price cap for additional wholesale costs
Ofgem has decided not to adjust the energy price cap for differences between wholesale costs and allowances over October 2022 to September 2023, and will make two small technical changes to its wholesale allowance model.
Welsh Government publishes response to Ofgem call for input on standing charges
The Welsh Government has told Ofgem that standing charges should be abolished, that North Wales pays the highest in Great Britain, and that a social tariff is overdue.
British Gas launches Price Promise tariff priced below Ofgem price cap
British Gas has launched a fixed-rate Price Promise tariff at £1,699 a year for average dual fuel use, promising to beat the Ofgem price cap until at least July.
Government applies prepayment meter discount
The government has applied a discount on prepayment meters since February 2024 so that customers are not financially penalised for being moved onto one.
Ofgem allows involuntary prepayment meter installations to resume
Ofgem has confirmed that some energy suppliers may resume installing prepayment meters without household consent in early 2024, ending a pause on the practice.
Ofgem approves R0147 and confirms standing charge levelisation from 1 April 2024
Ofgem has confirmed that standing charges for prepayment meter and direct debit customers under the price cap will be levelled from 1 April 2024, accepting change proposal R0147.
Ofgem introduced the Float temporary debt allowance
Ofgem has opened a consultation on whether the temporary debt allowance it added to the energy price cap in February 2024, known as the Float, was set at the right level.
Ofgem levelisation decision opens potential phase 2 on debt-related costs
Ofgem has said it could consult on levelling debt-related costs between Standard Credit and Direct Debit customers, as part of a wider review of price cap operating cost allowances.
Ofgem lowers price cap by around 12% for domestic energy bills
Ofgem has lowered its price cap for domestic energy bills by around 12% from April 2024, but gas and electricity costs remain 60% higher than in 2021, according to the End Fuel Poverty Coalition.
Ofgem sets out contingency proposals for price cap methodology
Ofgem has set out more detailed proposals for amending the price cap methodology if legislation on an energy intensive industry exemption is not in place by 1 April 2024.
Price cap announcement applies discount to prepayment standing charges
The February 2024 price cap announcement applied a discount to prepayment standing charges, making prepayment slightly cheaper than standard credit for the first time.