The price cap will rise by 13% from 1 October 2024, the second increase this year. For a typical dual-fuel household paying by direct debit, that means an extra £149 annually, pushing the average bill to £1,717.
As reported by dars.gov.et, the rise stems from higher wholesale gas costs and increased network charges. But the headline figure masks a deeper problem: households on prepayment meters will pay even more, roughly £1,837 a year, widening the gap between payment methods.
Who pays more, and who doesn’t
Every household on a standard variable tariff is affected, but the pain is uneven. Ofgem confirmed the cap applies to England, Wales, and Scotland for direct debit customers. Prepayment meter customers face a separate cap of £1,837, and those paying on receipt of bill will see £1,934, a 16% increase from the previous quarter.
The catch is that the cap isn’t a ceiling on your total bill. It limits the unit rate and standing charge. If you use more gas and electricity than the typical household (12,000 kWh gas, 2,900 kWh electricity), your bill will exceed £1,717. The average 3-bed semi with electric heating could hit £2,000+ this winter, according to Energy Saving Trust modelling.
One meter reading now saves pounds later
Suppliers estimate usage between meter readings. If you don’t submit a reading on 30 September, you risk being charged at the higher October rate for energy you used in September. Citizens Advice recommends taking a photo of your meter and sending the reading via your online account or app before midnight on the 30th.
This is not a trivial admin task. A single missed reading can cost an extra £20–£40 if the supplier backdates the increase. For households on prepayment meters, the risk is lower because you pay as you go, but you’ll still want to top up before the price change to lock in the lower rate.
EPC upgrades that soften the blow
The cap rise makes home efficiency improvements more urgent. Ofgem data shows that improving an EPC rating from D to C cuts annual gas use by roughly 2,400 kWh, saving about £180 at current rates. Add a smart thermostat and draft-proofing, and the saving can reach £300.
Grants are available. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The Boiler Upgrade Scheme provides £7,500 towards a heat pump. Both are funded by the government and administered by suppliers.
Yet take-up remains low. Only 12% of eligible households applied for the insulation scheme in its first year, according to documents seen by The Guardian. The application window for the Boiler Upgrade Scheme closes on 31 March 2027, but installers are already reporting six-month waiting lists in some regions.
What to do before 1 October
First, submit your meter reading on 30 September. Second, check your EPC rating at gov.uk, if it’s D or below, apply for the insulation scheme online. Third, if you’re on a prepayment meter, top up before the 1st. Fourth, consider switching to a fixed-rate tariff; some are now cheaper than the cap for the first year, though exit fees apply.
The cap will be reviewed again in February 2025. Ofgem has signalled another rise if wholesale prices stay high. Households that act now, reading, insulating, switching, will be better placed than those who wait.
Frequently Asked Questions
Take a photo of your gas and electricity meters on 30 September. Log into your supplier's website or app and enter the numbers under 'submit reading'. Do this before midnight to ensure your September usage is billed at the old rate.
Ofgem reviews the cap every three months. The next announcement is due in February 2025, based on wholesale prices in November–January. Analysts at Cornwall Insight predict a small increase, but nothing is confirmed.
