Energy price cap set at £1,717 for typical annual consumption

The energy price cap covering 1 October to 31 December 2024 is set at £1,717 per year for a typical household using gas and electricity and paying by Direct Debit¹. That is an increase of £149, or 10 per cent, on the £1,568 level that applied from 1 July to 30 September 2024¹. Ofgem announced the figure on 23 August 2024³.

The cap is a maximum price per kilowatt hour, not a cap on the total bill, so households that use more pay more⁴. Average bills for typical annual consumption under the quarterly cap from October 2024 are 38 per cent higher than in winter 2021-22, at £1,717 against £1,248 under the new Typical Domestic Consumption Values⁵. The End Fuel Poverty Coalition put the winter ahead at 65 per cent above pre-crisis levels².

Bills vary by nation and by the efficiency of the home. National Energy Action reported typical households in South Wales paying £1,753 and in North Wales £1,764⁶. The Energy and Climate Intelligence Unit estimated that a home at EPC band C would pay £903 over winter 2024/25, while one at band F would pay £1,288, £385 more⁷.

"The rise in the price cap will compound affordability challenges for those who are already struggling to pay their bills and comes as we approach the coldest months of the year."

Debt is at record levels. Ofgem confirmed on 26 September that customers owed £3.7 billion⁶; Consumer Scotland cited domestic energy debt and arrears in Great Britain exceeding £3.3 billion³. National Energy Action said the increase leaves 6 million UK households in fuel poverty⁴. Its survey with YouGov found 46 per cent of adults in Great Britain likely to ration energy use this winter, and 51 per cent in Wales⁶.

Why it matters for households

The cap sets the unit price, so a household's energy bill depends on how much gas and electricity it uses and on the standing charges it pays. The £1,717 figure describes a typical household, not a ceiling on any individual bill⁴. Homes that leak heat pay more for the same warmth: the ECIU calculated that homes rated EPC band D or worse would collectively pay up to £3.7 billion more this winter than if they were all band C⁷.

For a home's energy independence, the level of the cap matters less than the volume of energy it must buy and the efficiency of the building. Insulation rates have fallen by over 90 per cent since 2012, according to the ECIU⁷. The End Fuel Poverty Coalition said the cap could have been £1,071.98 had action been taken on insulation, standing charges and VAT⁸. Standing charges have risen 147 per cent for electricity and 15 per cent for gas in recent years⁸.

What happens next

The price cap is set to increase by a further 1.2 per cent in January 2025⁵. The government has said it will consult by the end of the year on tightening standards in the private rented sector so that homes meet EPC C by 2030⁷. A consultation on proposals for a Heat in Buildings Bill was published in November 2023, later than anticipated, and its analysis has not been published⁵.

Sources8 cited

1. Which? reveals cheap and simple changes to help cancel out energy price cap hike pain - Which?, which.co.uk
2. Energy bills up as some pensioners face worst prices on record - End Fuel Poverty Coalition, endfuelpoverty.org.uk
3. Price cap rise highlights need for better support and market reform | Consumer Scotland, consumer.scot
4. Almost half of adults are likely to ration their energy this winter – as bills RISE again - National Energy Action (NEA), nea.org.uk
5. Organisations - Tackling fuel poverty - periodic report 2021-2024: engagement responses - gov.scot, gov.scot
6. Half of Welsh adults are likely to ration their energy use this winter – as bills RISE again - National Energy Action (NEA), nea.org.uk
7. Energy & Climate Intelligence Unit | Millions of uninsulated, cold…, eciu.net
8. £1,071.98: The energy price cap households could have had, endfuelpoverty.org.uk