Breakdown of April Energy Price Cap

Author: Samuel Beckingham
Updated: Mar 06, 2024
3 minutes read

Ofgem is lowering the price cap in April to £1,690 a year for the average household. An annual saving of £238 will be seen on typical usage, but more can be saved if cutbacks are made to reduce energy use. Despite the price of energy lowering, standing charges are increasing.

Rates from April to June

Both electricity and gas unit prices are coming down from April. Electricity will go from 28.62p/kWh to 24.50p/kWh. Gas, on the other hand, will go from 7.42p/kWh to 6.04p/kWh. These savings themselves are relatively high in recent years.

The only downside is the standing charges, which are increasing quite significantly. In a single day, you will be paying almost 7p a day more for electricity. For gas, this is only going up by less than 2p.

You can see how these figures compare in the graph below.

These discounts are smaller than the previously anticipated 16% from Cornwall Insight. Instead, only 12.3% will be seen as the price of energy has fallen. Despite this, the decrease has been hailed as the lowest energy cap in two years.

Why The Price Cap Is Important

Even before the energy market exploded following the invasion of Russia into Ukraine, energy companies were struggling. Many went bust and customers had to be taken up by rival suppliers. In a bid to prevent widespread businesses from going under, the energy price cap set a limit on how much consumers could be charged on variable rates.

This decision was made to help companies survive by not selling energy for less than they bought it. Once fixed rate deals all but disappeared in 2021, households were subject to the variable cost of energy once more, dictated by the price cap.

Standing Charges

Over the years, many public figures, including Martin Lewis, have called for standing charges to be reviewed or scrapped altogether. This is a standardised payment from households just for being connected to the grid. If no energy is used throughout the whole year, the standing charge will still need to be paid.

This means that, come April, electricity will cost the average home £219.37 no matter how much they use. For gas, this will be £114.72. According to Ofgem, part of the reason for this increase is due to how much network costs have gone up. There have also been more than 40,000 calls for the energy regulator’s input.

Claim Back Money to Offset Energy Bills

There are many ways in which you can claim money back to help with the price of energy.

Housing Disrepair

If you live in rented accommodation through the council or housing association, your home might be suffering from disrepair. Your calls for fixes might be ignored, which entitles you to make a claim.

This has the power to make your home liveable again and to compensate you for the inconvenience. Start your claim by clicking on the button below.

Flight Delay

Any long distance flight leaving the UK that was delayed for four hours or more is entitled to £520 compensation. All airlines based in the UK or EU are subject to these rules, so it’s highly likely that you’re due a refund.

Use our flight delay compensation calculator to find out if you qualify, or find your flight by clicking on the button below.

Mis-sold PCP

Vehicles bought through personal contract purchase (PCP) could have been mis-sold in a number of different ways. Whether you had discretionary commissions added to your loan or the terms and conditions weren’t explained clearly enough, you could qualify.

PCP claims are real, and you can start your claim by clicking on the button below.