Today (Monday 27th February) Ofgem have announced the quarterly update to the Energy Price Cap. From 1st April 2023 the revised Price Cap will be set to £3,280. This figures is indicative an average household using dual fuel, paying via Direct Debit and with typical consumption.
Becuase of the Energy Price Guarantee, consumers will not pay more than £3,000 for the typical bill meaning that households will not feel the full effect of the EPC.
This reduction of almost £1,000 on the Price Cap means that we are slowly seeing the falls in wholesale energy prices trickle down to consumer level, and should these significant reductions in the cost of buying and providing energy for customers continue then futurher savings could be seen in the year to come.
Ofgem CEO Jonathan Brearly said:
“However, today's announcement reflects the fundamental shift in the cost of wholesale energy for the first time since the gas crisis began, and while it won’t make an immediate difference to consumers, it’s a sign that some of the immense pressure we’ve seen in the energy markets over the last 18 months may be starting to ease. If the reduction in wholesale prices we’re currently seeing continues, the signs are positive that the price cap will fall again in the summer, potentially bringing bills significantly lower.”
Price Cap Per Unit
The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on customers’ overall energy bills, which will still rise or fall in line with their energy consumption.
From 1 April the equivalent per unit level of the price cap to the nearest pence for a typical customer paying by direct debit will be 51p per kWh for electricity customers and a standing charge of 53p per day. The equivalent per unit level for a typical gas customer is 13p per kWh with a standing charge of 29p per day.
The next quarterly price cap update will be on 26 May 2023.
More and more customers are inspired by the energy crisis to make the most of the governemnts Boiler Upgrade Scheme.
As well as being envirvonemntally cleaner, replacing your old boiler with a renewable source of heating, such as an Air Source or Ground Source Heatpump, will improve your homes energy consumption and save you money in the long term.
The BUS (Boiler Upgrade Scheme) is the perfect opportunity to save money whilst transforming your property into a more energy efficeint home. Contratry to the name, you do not need to be replacing a boiler, and you can even be a self build new home, as long as you are leaving behind fossil fuels for a renewable solution, you will be eligible for the grant.
To find out more about making the most of the BUS contact us today for a no obligation chat, where we will be able to give you cost predicitons on what your property could save being heated by an Air Source Heat Pump or Ground Source Heat Pump.