The Energy Price Cap
Explained.

Bill Bullen

CEO - Utilita Energy

Ofgem has announced a change to the energy price cap - which means you may see changes in what you pay for your energy from 1 October 2024.

Changes to the energy price cap

Ofgem have announced a change to the energy price cap effective from 1 October. The energy price cap is reviewed every three months by Ofgem, and this sets a limit on how much you can be charged per unit of gas and electricity.

From 1 October 2024, a typical household will see their energy costs rise to £1,717 per year – but don’t forget, what you pay will always depend on how much energy you use.

We’ll be in touch to let you know exactly how this impacts your prices. You’ll hear from us regularly as things change, so you always know what’s happening with your energy costs.

We know lots of people are still struggling to afford their energy. We’ve got lots of resources full of support options and advice available if you're finding it difficult.

FAQs

  • Who sets and reviews the energy price cap?

    Ofgem are the independent regulator who are responsible for calculating the energy price cap - they are the sole decision maker. We then review our prices to make sure what you’re paying is in line with the price cap Ofgem sets.

  • What’s the difference between the energy price cap and Standing Charge Levelisation?

    The energy price cap is decided by energy regulator Ofgem, and it changes in line with wholesale prices – this is the energy we buy in bulk, before selling it on to you. The price cap sets a limit on the amount you pay per unit of gas and electric. The Standing Charge Levelisation replaced The Energy Price Guarantee which ended on 31 March 2024.

    The Standing Charge Levelisation, which was introduced on 1 April 2024, is to ensure Pay As You Go and Direct Debit customers pay the same standing charge. The Levelisation allowance meant that Direct Debit customers now typically pay £10 more per year. However, Pay As You Go customers now typically pay £49 per year less (or £52 per year less including VAT).

    As we don’t have a standing charge, we’ll apply any discount you qualify for to your unit rates, which means the discount you’re entitled to is applied automatically - there’s nothing you need to do.

  • Is the levelisation allowance or the energy price cap an absolute cap on energy costs?

    No - what you pay will always depend on your usage. So we’ll do everything we can to help you keep costs down. Remember, if you’re worried about paying for your energy, we’ve got lots of support options and advice available on our website.

  • Does Utilita have a standing charge?

    No! Our tariffs have two unit rates (three for economy 7), but none of them have a standing charge So if you don’t use any energy, you won’t pay a penny – nice!

  • I have a legacy prepay meter - will my prices go up in October?

    Lots of customers will see an increase in what they pay for their energy from 1 October, and this is the same for legacy meter customers. The first top-up you make on or after 1 October is what makes your meter update your prices.

    You’ll need to top-up with your Utilita key/card. If you need a new card/key or you’ve not got a Utilita key/card, visit our top-up card help page.

  • I'm a Pay As You Go customer - does this mean I pay more for my energy?

    No! Pay As You Go customers don’t have more expensive tariffs just because of the way they choose to pay for their energy. In fact, from 1 April 2024, the introduction of the Standing Charge Levelisation allowance within the price cap means that Direct Debit customers will typically pay £10 more per year. However, Pay As You Go customers will typically pay £49 per year less (or £52 per year less including VAT).

What we’re doing to help

We know lots of people are still struggling to afford their energy. We continue to do all we can to help customers through the cost-of-living crisis, providing financial support worth tens of millions of pounds and doubling the size of our Extra Care team. We’d also encourage anyone struggling to afford their bill to get in touch, so we can work together to find a solution.

While we take the time to understand our customers and listen to them, we know empathy doesn’t pay the bills - and the government needs to do more. Our message has always been that there are already struggling households that need so much more help. Support should be focused on the lowest-income households, so they don’t have to face the awful choice of heating or eating.

Getting support from us

We offer a wide range of options if you require financial help, as well as general advice on lowering your spend through energy efficiency.

Our Extra Care teams

In response to the cost-of-living crisis, we have doubled the size of our Extra Care team. Several benefits are available to vulnerable customers including account credits (terms apply), eligibility checks for the Energy Company Obligation scheme and tailored energy efficiency advice.

POWER UP

Our best-in-class POWER UP feature on the My Utilita app allows you to apply for a top-up of up to £40 for electric and £60 for gas credit at the tap of a finger when you’ve run out of credit and need to get back on supply.

Learn more

Face-to-face support!

If you want to talk face-to-face, no problem! Utilita is the only energy supplier with a national network of high street Energy Hubs.

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Government support schemes

Warm Home Discount

The Warm Home Discount Scheme gives a one-off payment of £150 to help with winter energy costs for those living on a low income or pension.

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Cost-of-Living Payment

A £650 payment will be made to more than eight million low-income households who receive Universal Credit, tax credits, pension credit and other means-tested benefits.

Learn more

Utilita Community

Join the Utilita Community where you can share your knowledge, get your questions answered and talk all things Utilita with other community members… or simply log on for a chat about the previous night’s TV!

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Save energy. Save money.

Knowledge is power

Make simple changes to the way you use energy at home and save £££s with our award-winning, national Energy High 5 campaign.

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Know the score

Our Smart Score app feature measures your energy efficiency, based on how it’s used at home. Visualised into a star rating, you’ll get personalised energy advice to help improve it too.

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Tip, tip, hooray!

Get daily energy-saving tips and much, much more besides – including quizzes and exclusive competitions – by joining the thousands of customers who already benefit from our Utilita Community.

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