Live energy updates and information - energy price cap level drops to £2,074 until October 2023

Ofgem has today announced that, from July, the level of the energy price cap will drop to £2,074 for average use households paying by Direct Debit until October.

As part of its Spring Budget announcement, the government has today confirmed that the level of its Energy Price Guarantee will stay at £2,500 until the end of June 2023.

This follows several months in which wholesale energy prices have come down. The expectation now is that the Ofgem price cap level will fall below £2,500 when it is next calculated in May, meaning that unit rates for those on standard tariffs will be dictated by Ofgem rather than the government. It's possible that, at that point, suppliers may begin to offer customers fixed energy deals again.

Ofgem has today announced a reduction in the level of the energy price cap, from £4,279 to £3,280.

This follows several months in which wholesale energy prices have come down. However, for the moment, it does not have any bearing on the amount that energy customers will pay because of the government’s Energy Price Guarantee, which will rise to £3,000 per year in April 2023. As long as the price cap is higher than the level of the Energy Price Guarantee, the government will continue to subsidise the cost of energy to suppliers.

Cornwall Insight, the energy analyst, has today suggested that energy switching could make a return in the second half of 2023 if wholesale energy costs continue to fall as they have done for the past few months.

With Energy Price Guarantee ensuring that standard variable tariffs are priced lower than almost all fixed deals, there has been no incentive for customers to switch suppliers and save money.

However, Cornwall Insight's analysts have suggested that, with the EPG due to rise to £3,000 in April and wholesale prices lowering, suppliers may start to be able to offer competitive fixed tariffs.

Ofgem CEO Jonathan Brearley has called for the introduction of discounted social tariffs targeted at the most vulnerable energy customers across the UK, with the idea set to be discussed with the UK government.

This would mean certain customers on low incomes would be offered cheaper energy deals, with the aim of alleviating the stress felt by households over energy bills next winter.

As part of his Autumn Statement, the Chancellor of the Exchequer, Jeremy Hunt, has announced that the Energy Price Guarantee will increase to £3,000 per year for average use households paying by Direct Debit for 12 months from April 2023.

The Energy Price Guarantee was introduced in October 2022 and saw typical energy prices - effectively the level of the energy price cap - set at £2,500 per year instead of rising to £3,549.

Additionally, the Chancellor announced a new set of cost of living payments designed to help the most vulnerable, including £900 for those on certain means-tested benefits, £300 for pensioners and £150 for those on disability benefits.

Those using alternative heating methods, such as heating oil, will receive a £200 payment.

Octopus Energy has announced that it has acquired Bulb, subject to regulatory approval, bringing a year of uncertainty for Bulb's customers to an end after the supplier was placed into special administration.

Find out more here.

The government has announced an Energy Price Guarantee that will see the energy price cap set at £2,500 for six months from 1 October. This follows the announcement in August that the cap would rise to £3,549, an unsustainable amount for millions of UK households.

Find out more about what this means for you here.

Ofgem has announced that the energy price cap will be increased to £3,549 in October as the wholesale energy market remains volatile.

This constitutes an 80% increase from the current cap level of £1,971 and, while it isn't a surprise, will understandably be alarming to households across the UK.

The government has announced the delivery details for the £400 discount on energy bills that customers will receive this autumn.

There will be a discount of £66 applied to energy bills in October and November, and a discount of £67 each month from December to March 2023.

Those who pay by direct debit (monthly or quarterly) will see an automatic deduction from those bills.

Those who have smart prepayment devices will have the money automatically added as a top-up on their account each month, so they will have to add less credit to their meter for their energy use.

However, those with older non-smart prepayment devices will receive an energy bill discount voucher during the first week of each month - delivery could be via text, email or post. They will then need to redeem these at their usual top-up point.

The Government has today announced a £15 billion package of relief measures aimed at easing the burden of the cost of living crisis for UK households, including a new one-off “cost of living payment” of £650 to eight million households which receive Universal Credit, Tax Credits, Pension Credit and legacy benefits.

Additionally, separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits will be made.

The £200 loan on energy bills that every household was due to receive from October has now been doubled to £400, but will no longer be required to be paid back.

Ofgem has today admitted that, due to a spike in electricity costs and an increase the cost of wholesale gas, the energy price cap is on course to rise by more than £800 to about £2,800 per year in October, though the final figure is yet to be determined. This is the first time Ofgem has released an estimated level for the next price cap.

Ofgem has opened a consultation on its proposal to review the energy price cap on a quarterly basis each year rather than the current twice-yearly review. This would see the cap level potentially changed every three months (in January, April, July and October) in order to better reflect the volatile energy market and fluctuating wholesale prices. If implemented, the changes would be introduced no earlier than October 2022, meaning that households would not experience any effects until January 2023.

Ofgem says that reviewing the cap each quarter will "reflect the most up to date and accurate energy prices and mean when prices fall from the current record highs, customers would see the benefit much sooner", and help suppliers "more accurately predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures which ultimately push up costs for consumers."

Energy prices rise today as the new price cap level comes into effect. Prices for UK energy customers on standard variable tariffs will rise by an average of 54% - an unprecedented increase.

While there is some government support for the most vulnerable, many households will have to manage this energy increase as best they can. Energy supplier provide some support as well, and there are ways to save money on other household bills if appropriate. More information can be found on this page.

The Scottish government has announced the allocation of its funding to help deal with the cost of living crisis. This includes:

• £150 to every household in receipt of Council Tax Reduction in any Council Tax band

• £150 for local authorities to pass on to all other occupied households in Bands A to D

• £10 million throughout 2022-23 to continue the Fuel Insecurity Fund, which helps households which would self-ration energy use due to unaffordable fuel costs from having to do so

More details will follow.

Details of help for Welsh households to combat the cost of living have been announced. The Welsh government has pledged to match the £150 Council Tax rebate to all households who live in properties in council tax bands A-D, as well as recipients of the Council Tax Reduction Scheme in all bands. More details will follow. £25m will also be provided to local authorities so they can use their local knowledge to help households who may be struggling. Further funding will be provided via the Discretionary Assistance Fund and the Winter Fuel Support Scheme, which will deliver an additional £200 later this year to low income households.

Following on from the announcement of the price cap level, the government has responded by unveiling a package of relief measures, including a rebate on energy bills and a rebate on Council Tax for those in bands A-D, designed to help alleviate the financial stress households across the UK are going to be put under.

Find out more here.

Ofgem has announced that the price cap level has been increased to £1,971, its highest ever level. This rise will come into effect from 1 April 2022.

Ofgem has announced that Together Energy has become the first supplier to go bust in 2022 as the effects of the volatile energy market still reverberate around the market.

With 176,000 domestic customers, Together Energy is one of the larger suppliers to go bust. Its customers will now be transferred to a new supplier under Ofgem's Supplier of Last Resort system.

In an unwelcome milestone for the energy industry, Zog Energy has today announced that it will cease trading as a result of the continued energy market volatility, becoming the 25th supplier to go bust since the situation began.

Around 11,700 households previously with Zog will now be transferred to a new supplier under the SoLR process.

Following on the heels of Bulb announcing it will enter into special administration earlier in the week, Orbit Energy and Entice Energy have both announced they will cease trading today.

With 65,000 and 5,400 domestic customers respectively, they are the latest casualties of the energy market. Their customers will be transferred to a new supplier in due course.

Per a statement on its website, Bulb has announced it supports being placed into special administration. While this has long been expected, customers unsure of what this means should be assured that their energy supply will continue and their credit balances will be protected. Bulb will continue to operate with support for the moment while a long-term solution is worked out.

Read more on our dedicated Bulb Q&A page here.

Two more energy suppliers at the smaller end of the scale go bust as both Neon Energy Ltd and Social Energy Supply Ltd announce they are exiting the market. The suppliers have a combined customer base of approximately 35,500, who will now be moved to a new supplier under the SoLR system.

The Suppliers of Last Resort have been announced for customers of Zebra Energy, Omni Energy and Bluegreen Energy, all of which ceased to trade last week.

• Zebra Energy customers will be transferred to British Gas

• Bluegreen Energy customers will be transferred to British Gas

• Omni Energy customers will be transferred to Utilita

Ofgem announces that Zebra Power, Omni Energy, Ampoweruk and MA Energy have all ceased trading. Under the Supplier of Last Resort system, the combined 23,700 customers of the four suppliers will be transferred to a new provider who is yet to be announced.

The supplier Bluegreen Energy, which had approximately 5,900 customers, announces it has ceased trading. Those customers will be transferred to a new supplier (yet to be announced) under the Ofgem Supplier of Last Resort system.

Ofgem has announced that Shell Energy will be the Supplier of Last Resort for the 22,000 customers displaced by Goto Energy exiting the market. This follows Shell also being appointed as the new supplier for customers of Pure Planet, Colorado Energy and daligas.

The government has announced that grants of up to £5,000 will be made available to up to 90,000 homes across England and Wales so low-carbon heat pumps can be installed. This is part of a package of measures aimed at decarbonising housing and reaching net zero. It has been criticised by figures including Ed Miliband and Greenpeace UK's Caroline Jones, who say it's an "unambitious ...and inadequate" measure.

Ofgem has announced that Shell Energy has been appointed as the Supplier of Last Resort for the 259,000 customers of the failed energy suppliers Pure Planet, Colorado Energy and daligas.

The energy supplier Goto Energy announces it has ceased trading. 22,000 customers will be transferred to a new supplier under the Ofgem Supplier of Last Resort initiative. Read more in our news story.

The energy supplier daligas announces it has ceased trading. 9,000 domestic and non-domestic customers will be transferred to a new supplier under the Ofgem Supplier of Last Resort initiative.

Gas shipping company CNG Group Ltd. has announced it will no longer provide gas to its UK energy supplier clients, citing significant financial damage after a number of its clients were forced out of the market by the current energy market situation. This means that energy providers will have to find a new supplier for gas at short notice or risk going out of business themselves.

Two suppliers, Pure Planet and Colorado Energy, announce that they have ceased trading. Pure Planet's 235,000 customers and Colorado Energy's 15,000 customers will be transferred to a new supplier in due course through Ofgem's Supplier of Last Resort process. You can read more in our story.