Energy price cap change in April 2024: What it means for you
Published date: April 2024
Ofgem has announced a decrease to the energy price cap from April 1st 2024.
Ofgem regulates the UK's energy market by limiting what a supplier can charge customers for units of electricity and gas.
Your Co-op Energy is one of the few suppliers pricing energy significantly below the cap. See our 100% renewable energy tariffs for your home.
What is the energy price cap?
The price cap is in place to ensure customers are paying a fairer price for their energy from suppliers. The energy price cap also impacts the standing charge which is the daily cost per fuel type.
The price cap is announced as a new quarterly figure based on the UK's ‘typical consumption’ of a dual-fuel household that pays for their energy bills by direct debit. A customer's bill amount will depend on how much energy they use, so those who use more or have less efficient homes, will pay more.
What did the energy price cap change to in April?
On the 1st of April 2024, the Ofgem price cap will decrease from £1,928 to £1,690. This will expire on the 30th of June 2024, by which time a newly revised energy price cap will be put in place.
The unit rate for your electricity will be around 14% lower and the unit rate for your gas will be around 19% lower.
While standing charges have generally increased, Your Co-op Energy will keep all renewable energy tariffs significantly below the new price cap, unlike other large suppliers. This means you'll benefit from both lower unit rates and lower standing charges compared to the standard price cap.
Why are standing charges increasing in April 2024?
While most energy companies simply pass on the standing charge set by Ofgem, which covers the cost of delivering energy to your home, we at Your Co-op Energy have a different view.
We believe it would be fairer for customers to have more control over their energy bills. That's why we support our partners Octopus Energy as they advocate for policy reform that would move standing charge costs into the unit rate. This way, you'd pay directly for the energy you use, rather than a fixed daily fee.
What additional support is on offer?
If you’re worried about paying your bills right now or have any other questions about Your Co-op Energy, head to our dedicated help & FAQs provided by our renewable energy partners, Octopus.
Additionally, you can also look through our dedicated blog and guide section, a growing resource for all things energy and renewables from Your Co-op.
What are the Flexible Your Co-op prices from April 1, 2024?
Summary of the changes
- Existing Your Co-op Energy customers on our Flexible tariff will see decreased unit rates and an increase in their standing charge. Prepayment customers will see a decrease in their standing charges.
- If you're already in debt on your account or your payments don't look like they will cover your usage based on our forecast, this could mean that our recommendation for your monthly payment goes up.
- Good to know: if you're not paying by Direct Debit, you could save a further £80 on average by setting one up with us.
How do I know if the Energy Price Cap will affect me?
If you’re on a Fixed tariff, you are unaffected by the Ofgem Price Cap change and you will continue to pay the agreed fee for your energy until your contract ends.
If you are on a variable or flexible tariff, your monthly energy price may change. However, as the April 1st to June 30th cap is now lower than before, chances are you will now be paying less for your energy each month.
You can find out more about the change to the energy price cap and whether it affects you on Ofgem’s website.
How do I switch to the best-value renewable energy in the UK?
You can switch to Your Co-op Energy with 100% renewable power in 2 simple steps:
Step 1: Get your quote
Use your postcode and let us know about your typical energy usage in 4 simple questions.
Step 2: Set up your account
Sign up and create your account to activate Your Co-op Energy in less than 5 minutes. You'll then be ready for 100% renewable energy to power your home.
That’s all you need to do, and we handle the rest (including contacting your old supplier). Switching is typically completed within 3 working days
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