British Gas, OVO, EDF, Octopus customers to be handed £122 'in two weeks'

The energy regulator has confirmed bills will fall by hundreds of pounds within days – but it won't last. The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 7% from 1 July to 30 September 2024.

That is compared to the previous quarter. For an average household paying by direct debit for dual fuel this equates to £1,568, a drop of £122 over the course of a year - a major boost for British Gas, EDF, OVO, Octopus households and more.

The average household paying by prepayment meter for dual fuel will pay £1,522 over the course of a year. The average household paying for dual fuel by standard credit will pay £1,668 over the course of a year, Ofgem has explained.

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The price cap set by Ofgem assumes a standing charge of £334 for a dual fuel customer (£369 for those who pay by standard credit). This is unchanged from the last price cap period, the regulator has gone on to confirm too.

Cornwall Insight, a consultancy firm that predicts energy prices, predicts the October to December Ofgem energy price cap could come in 12% higher than the July cap at £1,762 a year for an average household with an average amount of energy usage.

The price cap predictions are based on wholesale prices which are currently expected to remain at this level for the first three months of 2025 though this is too far into the future to predict with any certainty.

Dr Craig Lowrey said: “The next government, regardless of its composition, will face numerous competing priorities. Yet, it must maintain a focus on securing our energy future, whether this be bolstering our investment in renewables, modernising our grid, or streamlining the infrastructure development process, such measures are essential for fostering affordable and stable energy costs for both households and businesses.”