Gas & Electric Standing Charges – Compare Tariffs

Gas & Electric Standing Charges – Compare Tariffs Explained

The energy price cap in the UK is a limit set by the energy regulator, Ofgem, on the maximum amount that energy suppliers can charge for each unit of gas and electricity. It also sets a maximum daily standing charge, which is the cost of having your home connected to the energy grid12.

Key Points about the Energy Price Cap:

Purpose: Introduced in January 2019, the cap aims to protect consumers from being overcharged on standard variable and default tariffs.

Current Cap: As of October 1, 2024, the cap is set at £1,717 per year for a typical dual-fuel household paying by Direct Debit. This represents a 10% increase from the previous cap.

Coverage: The cap applies to standard variable tariffs and default tariffs, which most households are on1.

Calculation: The cap is based on wholesale energy prices, network costs, supplier operating costs, and other factors. It is reviewed and adjusted every three months.

Impact on Bills: While the cap limits the rates you pay per unit of energy, your total bill will still depend on your actual energy usage. Higher usage means higher bills.

Future Changes: The cap is reviewed quarterly, so it can change based on market conditions and other factors

Comparison websites

Using comparison websites line Energy4 provide you as the business owner complete transparent prices from the utility market. Concern that websites like MoneySuperMarket, GoCompare, and The Energy Shop claim to be comparison sites, however review of their websites does not call out Whole Of Market OfGem regulation changes. Energy4 remains a whole of market (WoM) price provider.

Data Provided: This allow you to compare energy tariffs from different suppliers. These sites often provide tailored quotes based on your energy usage.

Enter Your Details: You’ll need to provide your postcode, current energy supplier, and estimated usage. This information helps the comparison sites find the best deals for your specific situation.

Consider Different Tariffs: Look at both fixed and variable tariffs. Fixed tariffs lock in your rate for a set period, while variable tariffs can change based on market conditions.

Check for Additional Fees: Some tariffs may have standing charges or exit fees. Make sure to read the fine print to understand all potential costs.

Green Energy Options: If you’re interested in renewable energy, many suppliers offer green tariffs that source energy from renewable sources.

Switching Process: Once you find a better deal, the switching process is usually straightforward. Your new supplier will handle the switch, and there should be no interruption to your energy supply.