Yahoo News UK energy price update: Ofgem reduces price cap, but standing charges to rise from July 1
The energy price cap is due to decrease after this weekend. Ofgem has confirmed that the cap will be reduced from £1,690 to £1568 starting July 1 - a total price reduction of £122.
However, it's crucial to understand that the price cap does not set a strict limit on what customers will pay each month.
Rather, it sets a limit on the overall price that energy companies can charge for their service and per unit of energy used in each household. This means your bills could be lower or higher depending on your usage.
The cost per unit of energy is the main factor that is decreasing nationwide. However, standing charges, which are applied daily, are expected to rise significantly.
These rates may also differ based on your energy contract and the region you reside in. We've detailed the average rates for each region across the UK below, reports Plymouth Live.
Rates for gas from July 1
Region | Unit rate (per kWh) | Standing charge |
Eastern | 5.40p | 31.03p |
East Midlands | 5.34p | 31.10p |
London | 5.55p | 32.03p |
Midlands | 5.44p | 31.44p |
North Wales | 5.45p | 31.87p |
North West | 5.40p | 31.59p |
Northern | 5.47p | 31.56p |
Northern Scotland | 5.40p | 31.59p |
Southern | 5.56p | 30.78p |
South East | 5.41p | 30.94p |
South West | 5.76p | 30.97p |
South Wales | 5.69p | 31.73p |
Southern Scotland | 5.40p | 31.66p |
Yorkshire | 5.45p | 31.53p |
Rates for electricity from July 1
Region | Unit rate (per kWh) | Standing charge |
Eastern | 23.08p | 49.94p |
East Midlands | 23.08p | 56.02p |
London | 23.53p | 40.97p |
Midlands | 21.69p | 62.75p |
North Wales | 23.53p | 67.05p |
North West | 22.59p | 51.19p |
Northern | 21.28p | 71.22p |
Northern Scotland | 22.90p | 61.12p |
Southern | 22.49p | 63.36p |
South East | 23.13p | 56.93p |
South West | 22.10p | 67.21p |
Southern Scotland | 21.83p | 63.33p |
Yorkshire | 21.22p | 67.45p |
