30 August 2023
Short Statement on Energy Costs

I am pleased that Ofgem has announced a further reduction in the energy price cap for the last quarter of 2023 (October to December).

The change will bring the average dual-fuel energy bill below £2,000 a year for the first time since April 2022, saving households an average of £151 on the previous quarter. 

From 1 October – 31 December, the cap will be set at an annual level of £1,923 for a dual fuel household paying by direct debit, based on the current typical domestic consumption values (TDCV) rate.

Energy Costs table

Whilst energy prices are still too high, this drop to the lowest level since October 2021 reflects further falls in wholesale energy prices, as the market stabilises and suppliers return to a healthier financial position after four years of loss making.  Ofgem is also clear that it expects all suppliers to continue improving customer service, to support their most vulnerable customers and to shore up their financial resilience to prevent the kind of failures we saw two years ago.  Ofgem recognises that there is some best practice across the sector but expects standards to improve, with poor practice stamped out.

In addition, Ofgem has introduced new measures to support consumers including reducing costs for those on pre-payment meters, and introducing a new code of conduct that all suppliers must meet before they restart installation of any mandatory pre-payment meters.  And with more competitive fixed deals coming onto the market, the ability for customers to switch suppliers should increase too.

As your MP, I will continue to be a fierce champion for Bracknell by calling for yet lower energy prices and keeping the pressure on the Government to do as much as it can to support families.  Thankfully, energy bills will now be lower as we head towards the Winter but there is still work to do to ensure that we return to pre-pandemic cost levels, both for domestic consumption and business.