Ofgem announced on 23 August 2024 that the energy price cap for 1 October to 31 December 2024 will be £1717 per year for a typical household using electricity and gas and paying by Direct Debit1. That is a rise of 10%, or around £12 a month on an average bill, and it is 6% (£117) cheaper than the same period a year earlier, when the figure was £1,8341.
The cap sets the maximum a supplier can charge for each unit of energy and each daily standing charge, and it covers standard credit, Direct Debit, prepayment meters and Economy 7 meters1. Under the new level, a household on a standard variable tariff paying by Direct Debit pays on average 24.50 pence per kilowatt hour for electricity, with a daily standing charge of 60.99 pence, and 6.24 pence per kilowatt hour for gas, with a daily standing charge of 31.66 pence1. Those averages cover England, Scotland and Wales and include VAT1. Ofgem states that the actual amount paid depends on how much energy a household uses, where it lives and the type of meter it has1. The typical household figure is not a cap on any individual bill, and the rates differ by payment method.
Alongside the cap level, Ofgem published an options paper on domestic standing charges, following a review that drew responses from more than 30,000 customers, consumer groups and charities1. The options could reduce the standing charge by between £20 and £100 per year by moving parts of fixed supplier costs to the unit rate1. Ofgem said it is asking suppliers to offer tariffs with no or low standing charges alongside their current tariffs1. It also noted that such changes could affect people who cannot safely reduce their energy use, including those dependent on life-saving medical equipment or living in housing with poor insulation1.
"From 1 October to 31 December the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up to £1717 per year."
Ofgem also extended its initial 12-month allowance to cover increased debt costs associated with additional support credit, which it expects to remain in place for at least another six months1. Additional support credit is often issued to people at risk of being cut off because they cannot afford to top up their meter1.
| Item | 1 October to 31 December 2024 |
|---|---|
| Typical Direct Debit household, per year | £1717 |
| Change on previous quarter | +10% (around £12 a month) |
| Compared with same period in 2023 | 6% (£117) cheaper |
| Electricity unit rate, Direct Debit average | 24.50p per kWh |
| Electricity standing charge | 60.99p per day |
| Gas unit rate, Direct Debit average | 6.24p per kWh |
| Gas standing charge | 31.66p per day |
Why it matters for households
The cap level is a ceiling on unit rates and standing charges, not on the total bill, so a household that uses more than the typical amount pays more than £1717, and one that uses less pays less1. The standing charge is charged every day even when no energy is used, and it covers network maintenance, meter readings and government social and environmental schemes such as the Warm Home Discount1. For a home trying to cut its reliance on the grid, the fixed daily charge is the part of the bill that does not fall when consumption falls, which is why the options paper matters: shifting fixed costs into the unit rate would change the arithmetic for low-use and self-generating households, and for those who cannot reduce use at all1. The energy price cap applies to default tariffs, so households on fixed deals are not covered by this level.
What happens next
The consultation on standing charges closes on 20 September 20241. The levels for 1 January to 31 March 2025 will be published by 25 November 20241.