Ofgem announced in August 2024 that the energy price cap for Quarter 4 2024 would be £1,7171. The figure is £149 higher than the Quarter 3 2024 cap of £1,5681. The cap is the limit on the unit rate and standing charge a supplier can charge domestic customers on a default tariff, and since October 2022 it has been updated every three months1.
The £1,717 figure is the cap level for a typical household, not a ceiling on what any individual household pays. The energy bills and the price cap guide sets out how the level is calculated and why a home's actual bill can sit above or below it, and the price cap history page lists every level with the dates on which each is announced. The mechanics of the default tariff cap, including the role of the quarterly review, are covered in the regulation and policy guide to the cap.
The announcement was carried in consumer advice published by Energy UK, the Department for Energy Security and Net Zero and Ofgem, which states:
"In August 2024 Ofgem announced the energy price cap for Quarter 4 2024 would be £1,717. This is an increase of £149 from the Quarter 3 2024 price cap of £1,568."
The same document records other changes with a bearing on household costs. From 1 April 2024, standing charges for prepayment meters were reduced to the level of direct debit under the price cap1. Energy suppliers agreed in February 2023 to stop force-fitting prepayment meters, or switching smart meters to prepayment mode, without consent, and further rules took effect from November 20231. The legacy industry-run service supporting Radio Teleswitch (RTS) meters is being phased out and is planned to end on 30 June 20251.
On support schemes, the document records that the Welsh Government Warm Homes Nest scheme ended at the end of March 2024, replaced by the Welsh Government Warm Homes Scheme from Monday 1 April 20241. The application window for the Welsh Government Fuel Support Scheme closed on 28 February 20231. It also notes that from January 2024 EDF, Octopus, Scottish Power, Tru Energy, E.ON, Utility Warehouse, Utilita and Ovo Energy had met Ofgem's strict criteria, and that new rules from April 2023 mean suppliers should offer £30 credit1. A scheme described as intended to be delivered from 2025 is also referenced1.
Why it matters for households
A cap that rises by £149 between quarters means the default tariff price for gas and electricity is higher in Quarter 4 2024 than in Quarter 3 2024, and that increase lands as colder weather raises consumption. Because the cap governs unit rates and standing charges rather than the total on a bill, a household using more energy than the typical figure will pay more than £1,717, and one using less will pay less. Standing charges accrue daily regardless of use, which matters most for prepayment customers, who may not realise charges build up in periods when no energy is used1. For a home's energy independence, the cap sets the price of the energy bought in, but does not change how much of it a household needs; the document points to reducing heat loss, such as through draught excluders, as a way to reduce bills1. The energy prices over time page tracks how domestic prices have moved, and the energy bills and energy independence guide covers the relationship between bills and reliance on bought-in energy.
What happens next
The cap is updated every three months1. The document records that the legacy service supporting RTS meters is planned to end on 30 June 20251. No further announcement date for the cap beyond the quarterly cycle is given in the document.